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

Question

Quizplus · Accepted Answer

Real GDP figures are adjusted for inflation and provide a more accurate reflection of the economy's performance as they take into account changes in prices. Nominal GDP figures do not account for changes in prices, which may result in an overestimation or underestimation of the economy's performance. GDP figures measured by the expenditure approach and income approach are also important indicators, but real GDP figures provide a better overall picture of the economy's performance.

To Determine How Well an Economy Is Doing,it Is Better