Real GDP is better than nominal GDP for measuring growth because real GDP has been adjusted for changes in
A)The price level.
B)Unemployment.
C)The business cycle.
D)Productivity.

Question

Quizplus · Accepted Answer

Real GDP has been adjusted for changes in the price level, which allows for a more accurate measurement of growth by accounting for inflation. Changes in unemployment, the business cycle, and productivity may affect growth, but they are not directly accounted for in either real or nominal GDP measurement.

Real GDP Is Better Than Nominal GDP for Measuring Growth