Question

Which of the following statements about nominal GDP and real GDP is correct?

a. Real GDP is a better gauge of economic well-being than is nominal GDP.

b. Real GDP and nominal GDP are equally good measures of economic well-being.

c. Whether real GDP or nominal GDP is a better measure of economic well-being depends on the mix of goods and services.

d. Nominal GDP is a better gauge of economic well-being than is real GDP.