Question

Which of the following is true?
a. Nominal GDP does not include childcare
b. Nominal GDP does not include intermediate goods
c. Nominal GDP does not take into account the effects of inflation
d. Nominal GDP does not include imported goods

Answer 1

Answer:

c. Nominal GDP does not take into account the effects of inflation

Explanation:

Nominal gross domestic product (GDP) can be described as a measure of the GDP or goods and services produced within the boundary of a country using current prices without taking into consideration the effects of inflation.

This nominal GDP is contrast to the real GDP which measures the GDP of a country by adjusting for the effect of inflation.

Therefore, the correct option is c. Nominal GDP does not take into account the effects of inflation.