To determine how well an economy is doing, it is better to use
A) nominal Gross Domestic Product (GDP) figures.
B) real Gross Domestic Product (GDP) figures.
C) Gross Domestic Product (GDP) figures measured by the expenditure approach.
D) Gross Domestic Product (GDP) figures measured by the income approach.

Question

Quizplus · Accepted Answer

Real Gross Domestic Product (GDP) figures are adjusted for inflation and provide a more accurate measure of economic growth than nominal GDP figures. Expenditure approach and income approach can both be used to measure GDP, but the choice between them depends on what data is available and what the user is interested in measuring.

To Determine How Well an Economy Is Doing, It Is