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Nominal GDP and Real GDP
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Problem 10
Nominal GDP and Real GDP
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10. Measuring National Output and Income / Nominal GDP and Real GDP / Problem 4
Problem 4
Which of the following is a limitation of using real GDP as a measure?
A
It does not account for changes in relative prices of goods over time.
B
It does not include government spending.
C
It is not adjusted for inflation.
D
It includes imports as a positive component.
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