Which of the following statements is correct?
A)economic variables measured in physical units are nominal variables, and economic variables measured in monetary units are real variables
B)economic variables measured in physical units are real variables, and economic variables measured in monetary units are nominal variables
C)economic variables measured in physical units are actual variables, and economic variables measured in monetary units are nominal variables
D)economic variables measured in physical units are real variables, and economic variables measured in monetary units are actual variables

Question

Quizplus · Accepted Answer

Real variables are measured in physical units and reflect changes in the actual quantity of goods or services produced or consumed. Nominal variables are measured in monetary units and reflect changes in prices. Therefore, economic variables measured in physical units are real variables, and economic variables measured in monetary units are nominal variables.

Which of the Following Statements Is Correct