Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932.
-Refer to Table 23-4. What was the growth rate of real GDP for 1931?
A)-6.93%. Real GDP is a better gauge of economic well-being than nominal GDP.
B)-6.93%. Nominal GDP is a better gauge of economic well-being than real GDP.
C)-6.49%. Real GDP is a better gauge of economic well-being than nominal GDP.
D)-6.49%. Nominal GDP is a better gauge of economic well-being than real GDP.

Question

Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932. 
-Refer to Table 23-4. What was the growth rate of real GDP for 1931?
A)-6.93%. Real GDP is a better gauge of economic well-being than nominal GDP. 
B)-6.93%. Nominal GDP is a better gauge of economic well-being than real GDP. 
C)-6.49%. Real GDP is a better gauge of economic well-being than nominal GDP. 
D)-6.49%. Nominal GDP is a better gauge of economic well-being than real GDP.

Quizplus · Accepted Answer

The growth rate of real GDP for 1931 is -6.49%, and real GDP is considered a better gauge of economic well-being than nominal GDP because it accounts for inflation.

Table 23-4 the Table Below Reports Nominal and Real GDP for the for the U.S