Which of the following statements is true?

a

While Real GDP is the (current) dollar value of production, Nominal GDP is a measure of the quantity of goods and services produced.

b

Nominal GDP measures production at current dollar values, which creates problems because the value of the dollar changes over time (as a result of inflation).

c

Even if the economy continues producing the same quantity of goods and services, just because there is inflation (prices are increasing), Nominal GDP will decrease.

d

All of the above.

e

Only a) and b)

Question 35(1 point)

Which of the following statements is true?

a

Inflation (increasing prices) makes the dollar lose purchasing power and affects nominal GDP.

b

Nominal GDP is calculated using the prices that were prevalent when the output was produced.

c

Real GDP has been adjusted to remove changes in prices.

d

All of the above.

e

Only a) and b)

Question 36(1 point)

Which of the following statements is true?

a

The expenditure approach measures GDP as the sum of all of the money spent in buying the economy's output.

b

According to the expenditure approach, GDP = Sum of all spending in American goods and services by households, firms, the government, and foreigners.

c

In theory, both methods should yield equal results. The expenditure and income approaches are two different ways to look at the same thing.

d

All of the above.

e

Only a) and b)