Real GDP values current production at
A) current year prices.
B) the best estimate of next year's prices.
C) the average of price levels over the entire sample period.
D) base year prices.
E) the purchase price not the asking prices of goods and services.

Question

Quizplus · Accepted Answer

Real GDP is calculated at base year prices in order to account for changes in inflation over time. This allows for a more accurate comparison of economic activity across different time periods.

Real GDP Values Current Production at