What does real GDP measure?
A)the constant-dollar value of the potential output of the nation's economy over the period of one year
B)the constant-dollar value of total output produced by the nation's economy over the period of one year
C)the fluctuations of national income around its long-term trend
D)the annual growth rate of real national income
E)the long-term trend in total output produced by the nation's economy

Question

Quizplus · Accepted Answer

Real GDP measures the constant-dollar value of total output produced by the nation's economy over the period of one year. It is an important measure of economic activity and growth.

What Does Real GDP Measure