Question 4 (1 point) Question 4 Unsaved What is the difference between nominal G

Question

Question 4 (1 point)
Question 4 Unsaved

What is the difference between nominal GDP and real GDP?
Question 4 options:


Nominal GDP represents purchasing power while real GDP is measured in terms of current dollars.


Nominal GDP is measured in current market prices while real GDP corrects for changes in the overall level of prices from year to year.


Nominal GDP is computed by using the expenditure approach while real GDP is computed by using the income approach.


Nominal GDP is the total value of output produced while real GDP is the amount per individual.



Question 5 (1 point)
Question 5 Unsaved

Which of the following statements is NOT TRUE about the use of GDP as a measure of national welfare?
Question 5 options:


GDP is a useful measure of national welfare since it excludes nonmarket transactions.


GDP is limited as a measure of national welfare since it does not consider the amount of leisure time available to the nation's residents.


GDP is limited as a measure of national welfare since it does not consider environmental quality.


GDP is limited as a measure of national welfare since it does not account for labour market discrimination.

Explanation / Answer

Nominal GDP is computed by using the expenditure approach while real GDP is computed by using the income approach.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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