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How Does Real Gross Domestic Product (GDP)differ from Nominal GDP

Question 27

Multiple Choice

How does real gross domestic product (GDP) differ from nominal GDP?


A) Nominal GDP controls for price changes, while real GDP does not.
B) Real GDP controls for price changes, while nominal GDP does not.
C) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison.
D) There is no difference between nominal GDP and real GDP.

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