Real GDP will increase only if the

Name: Real GDP will increase only if the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Real GDP measures the value of goods and services produced within an economy, adjusted for inflation. Thus, real GDP will increase only if the quantity of goods and services produced increases, regardless of changes in employment rates or average price levels. In fact, if production increases without a corresponding increase in productivity, real GDP could actually fall if prices rise faster than production.

Real GDP Will Increase Only If the