Total value added in a nation over a period of one year isequal to (a) the balan

Question

Total value added in a nation over a period of one year isequal to (a)   the balance of trade. (b)   the national debt. (c)   GDP. (d)   the budget deficit. (e)   the federal budget. Total value added in a nation over a period of one year isequal to (a) the balance of trade. (b) the national debt. (c) GDP. (d) the budget deficit. (e) the federal budget. In evaluating an economy's performance over a period of years,real GDP provides a better measuring stick than nominal GDP,because (a) nominal GDP is distorted by itsfailure to show qualitative improvements in the products wemanufacture. (b) real GDP includes productiveendeavors, e.g., home repairs, performed by households withoutpayment. (c) real GDP is adjusted for the socialand environmental costs of production, which are normally notcompensated. (d) real GDP doesn't include the value ofintermediate goods and services. (e) nominal GDP reflects changes inprices, as well as changes in output. If nominal GDP increases, (a) real GDP must remain constant. (b) real GDP must decrease. (c) real GDP must increase. (d) real GDP will either increase ordecrease. (e) real GDP will increase only if theinflation rate is higher than the rate of increase in nominalGDP.

Explanation / Answer

1) (c) GDP

2 (c) real gdp is adjusted for the social and environmentalcosts...

3 (d) real gdp will either increase or decrease

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