The primary value of real GDP is its ability to measure year to year changes in
A) real output.
B) income inequality.
C) real social welfare.
D) the general level of prices.

Question

Quizplus · Accepted Answer

Real GDP measures the value of all goods and services produced within a country's borders, adjusted for inflation. Its primary value is to measure year-to-year changes in real output, or the total level of production in the economy. It does not directly measure income inequality, social welfare, or the general level of prices.

The Primary Value of Real GDP Is Its Ability to Measure