Real GDP is the value of all __________ goods and services produced in a given year in __________ prices.
A) intermediate; that year's
B) intermediate; base-year
C) final; that year's
D) final; base-year

Question

Quizplus · Accepted Answer

Real GDP is adjusted for inflation by using base-year prices. Therefore, it is the value of all final goods and services produced in a given year in base-year prices. The use of intermediate goods is not included in the calculation of real GDP as they are already accounted for in the final goods and services.

Real GDP Is the Value of All __________ Goods and Services