Page 25 - Macroeconomics. book docx_Neat

B. Measure inflation

C. Measure population

D. Measure income inequality

Answer: B

12. The GDP deflator formula compares:

A. Nominal GDP and Real GDP

B. Prices and wages

C.Consumption and investment

D. Exports and imports

Answer: A

13. GDP per capita is used as an indicator of:

A. Inflation

B. Living standards

C. Government spending

D. Interest rates

Answer: B

14. One limitation of GDP is that it:

25