Real GDP is:
A) the value of the production of all final goods and services measured in current prices.
B) the value of the production of all final goods and services adjusted for price changes.
C) the projected future value of GDP.
D) calculated by adding up only the real number of all items sold in the United States, regardless of their prices.

Question

Quizplus · Accepted Answer

Real GDP is the value of the production of all final goods and services adjusted for price changes. This means that it takes into account the impact of inflation or deflation on the value of goods and services produced, allowing for a more accurate representation of the economy's performance over time. Choice A describes nominal GDP, which does not account for changes in price levels. Choice C is incorrect because GDP cannot be projected, only measured based on past data. Choice D is not a valid method of calculating GDP as it only accounts for quantity sold and not prices.

Real GDP Is