Real GDP is more accurate than nominal GDP in making comparisons of output over time because:
A. Nominal GDP can increase simply because of price increases over time.
B. Real GDP is not affected by output changes.
C. Nominal GDP is the hypothetical output that would be produced at full employment.
D. Real GDP is not affected by changes in productivity or the size of the labor force.
Answer:A
Real GDP is more accurate than nominal GDP in making comparisons of output over time because:
A. Nominal GDP can increase simply because of price increases over time. B. Real GDP is not affected by output changes. C. Nominal GDP is the hypothetical output that would be produced at full employment. D. Real GDP is not affected by changes in productivity or the size of the labor force.