O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2016 · Q211 Mark
Why is nominal Gross Domestic Product not a good measure to compare the standard of living in a country between two years?
AIt does not account for inflation.
BIt does not allow for savings.
CIt does not include government expenditure.
DIt only compares export prices with import prices.
✓ Correct answer
A: It does not account for inflation.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government and the macroeconomy and see which topics are most likely to come up next.
Sign up free →