Measuring GDP in nominal terms
A)is the most effective method because it accurately measures how an economy's physical production has changed over time.
B)is unreliable because the quality of goods changes over time.
C)is the market value of an economy's final output using the market prices of a given base year.
D)does not tell us how an economy's physical production has changed over time.

Question

Quizplus · Accepted Answer

Nominal GDP measures the market value of goods and services using current prices, so it does not account for changes in physical production or inflation over time.

Measuring GDP in Nominal Terms