Nominal GDP measures the quantities of goods and services produced in the: curre

Question

Nominal GDP measures the quantities of goods and services produced in the: current year and valued at current prices. current year and valued at constant (base) prices. base year and valued at current prices. base year and valued at future prices. Real GDP measures the quantities of goods and services produced in the: current year and valued at current prices. current year and valued at constant (base) prices. base year and valued at current prices. base year and valued at future prices. If nominal GDP rose from one year to the next: total spending fell. real spending also rose. prices rose (there was inflation). total spending also rose. Prices rose (there was inflation). Total spending also rose. If 2005 is the base year, then real GDP in 2006 is a measure of: the market value of goods and services produced in 2005, assuming no change in the price level between 2005 and 2006. the market value of goods and services produced in 2006, assuming no change in the price level between 2005 and 2006. the current market value of goods and services produced in 2005. the current market value of goods and services produced in 2006. If, in a given year, nominal GDP is $11, 850 billion and the GDP deflator is 120, then real GDP is: $8, 500 billion. $14, 220 billion. $9, 875 billion. $9, 500 billion. Of the following measures, the one that is the best measure for tracking economic growth over time is: the absolute change in nominal GDP. the percentage change in nominal GDP. the absolute change in real GDP. the percentage change in real GDP.

Explanation / Answer

1. Current year and valued at current price.

2. Current year and valued at constant(base) price.

3. Total spending also rose.

4. The market value of good and services produced in 2006, assuming no change in price level between 2005 and 2006.

5. $9,875 billion ( Real GDP = Nominal GDP / Deflator * 100)

6. The percentage change in real GDP.

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.