Nominal GDP is
A) the sum of all monetary transactions that occur in the economy in a year.
B) the sum of all monetary transactions involving ﬁnal goods and services that occur in the economy in a year.
C) the amount of production that occurs when the economy is operating at full employment.
D) money GDP adjusted for inﬂation.

Question

Quizplus · Accepted Answer

Nominal GDP is the sum of all monetary transactions involving final goods and services that occur in the economy in a year, without adjusting for inflation. Option A is incorrect because it includes all transactions, including intermediate goods and financial transactions. Option C is referring to potential or full employment GDP, and option D is describing real GDP, not nominal GDP.

Nominal GDP Is