A real variable is one that corrects for:
A) sales outside of a country's borders.
B) inflation.
C) population growth.
D) unemployment.

Question

Quizplus · Accepted Answer

A real variable corrects for inflation by adjusting nominal values for changes in the price level. Real variables are used to measure changes in the economy's production or income, rather than changes in nominal values that may be influenced by inflation. Real variables include real GDP, real wages, and real interest rates. Choices A, C, and D are not correct as they represent different economic concepts that would require different types of adjustments.

A Real Variable Is One That Corrects For