Real GDP is the
A)Value of final output produced,adjusted for changing prices.
B)Value of final output produced,measured in current prices.
C)Income earned by current factors of production.
D)GDP minus depreciation.

Question

Quizplus · Accepted Answer

Real GDP is the value of final output produced, but it is adjusted for changing prices through the use of a price index like the Consumer Price Index (CPI) or the GDP deflator. This allows for a more accurate comparison of economic output over time. Option B refers to nominal GDP, which does not account for changes in prices. Option C refers to national income, which is a related but different concept. Option D refers to net domestic product (NDP), which subtracts depreciation from GDP.

Real GDP Is the