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What Is the Difference Between Nominal and Real GDP

Question 94

Multiple Choice

What is the difference between nominal and real GDP?


A) Nominal GDP is adjusted for changes in the price level;real GDP is not.
B) Real GDP is adjusted for taxes and transfer payments;nominal GDP is not.
C) Real GDP is adjusted for changes in the price level;nominal GDP is not.
D) Nominal GDP is adjusted for depreciation;real GDP is not.
E) Real GDP is adjusted for depreciation;nominal GDP is not.

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