Can someone please confirm my answer for multichoice Q on nominal and real GDP?
Yes, the answer is b. To the extent that GDP would be used as a measure of economic well-being (it’s not the best measure available), it is a measure of the total amount of goods and services produced in an economy in a year. To compare year-to-year, you would want to know how much the amount of the goods and services changed over time. Nominal GDP is just a dollar amount, which doesn’t factor out the effect of inflation in the total. Real GDP adjusts inflation out, leaving the difference you are looking at being only due to changes in actual output. You do not want to go with d: that would be like picking and choosing whichever number will make you look better.
