A nation's real national income in a given year measures the
A)value of output produced by the economy, measured in constant dollars.
B)level of national income that is subject to taxation by the federal government.
C)opportunity cost of the economy's national output.
D)market value of national output produced by the economy.
E)dollar income earned by the nation's producing sector.

Question

Quizplus · Accepted Answer

Real national income measures the value of output produced by the economy, adjusted for inflation, and expressed in constant dollars to reflect true purchasing power.

A Nation's Real National Income in a Given Year Measures