The total value of all final goods and services produced in a given year, calculated with the prices current in the year in which the output is produced, is:
A) real GDP.
B) nominal GDP.
C) net exports.
D) consumption spending.

Question

Quizplus · Accepted Answer

Nominal GDP is the total value of all final goods and services produced in a given year, calculated with the prices current in the year in which the output is produced. Real GDP, on the other hand, is calculated using constant prices to account for inflation. Net exports and consumption spending refer to specific components of the GDP calculation.

The Total Value of All Final Goods and Services Produced