Question

The difference between

nominal and real GDP can
serve as a measure of which of
the following?
A. employment
B. interest rates
C. inflation
D. unemployment

Answer 1

The difference between nominal and real GDP can serve as a measure of inflation.

Step-by-step explanation:

The difference between nominal and real GDP can serve as a measure of inflation. Nominal GDP measures the total value of goods and services produced in a given year at current market prices, while real GDP adjusts for inflation by using constant prices. Therefore, the difference between nominal and real GDP reflects the impact of inflation on the economy.

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