Real GDP
A)moves in the same direction as unemployment.
B)is not adjusted for inflation.
C)measures economic activity and real income.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Real GDP measures the value of goods and services produced in an economy adjusted for inflation, therefore it represents economic activity and real income. It is not directly related to unemployment, as changes in employment levels can affect the composition of output, but not the value of output.