To compare the economy's aggregate output in two different time periods,economists compare the
A)nominal national income for the two periods.
B)potential national incomes for the two periods.
C)real national income for the two periods.
D)unemployment rates for the two periods.
E)inflation rates for the two periods.

Question

Quizplus · Accepted Answer

To accurately compare the economy's aggregate output in two different time periods, it is important to adjust for changes in the general price level between the two periods. Real national income accounts for changes in inflation and provides a more accurate measure of the economy's output. Nominal national income, potential national income, unemployment rates, and inflation rates all do not account for changes in the price level, making them less accurate measures for comparing aggregate output over time.

To Compare the Economy's Aggregate Output in Two Different Time