Comparing nominal GDP of 2012 to nominal GDP of twenty years ago
A)is an inaccurate measure of the change in total production.
B)has no economic meaning.
C)will be an accurate measure of the change in total production.
D)determines the extent to which the cost of living changed.
E)cannot be done because the two GDP measures use different prices.

Question

Quizplus · Accepted Answer

Nominal GDP does not account for changes in the price level, so comparing it to nominal GDP from years ago would not accurately reflect changes in total production. To obtain an accurate measure of total production, real GDP should be used, which adjusts for changes in the price level over time.

Comparing Nominal GDP of 2012 to Nominal GDP of Twenty