Politics

Question

Time lef

Which statement about nominal and real GDP is incorrect?

Select one:

• A. If nominal GDP is higher this year than last year, there must be positive economic growth.

O B. Real GDP is measured as a flow.

• c. Nominal GDP includes products and services produced within a country's borders, no matter what the

nationality of the business doing the producing.

• D. Real GDP per person is a better measure of standard of living than nominal GDP per person.

• E. Nominal GDP is measured as a flow.

Answer

A. If nominal GDP is higher this year than last year, there must be positive economic growth.

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The statement that is incorrect is A. While an increase in nominal GDP can indicate positive economic growth, it does not necessarily mean that there is positive...