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Real GDP Is More Accurate Than Nominal GDP in Making

Question 31

Multiple Choice

Real GDP is more accurate than nominal GDP in making comparisons of output over time because


A) Nominal GDP may change simply because of price changes 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.

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