Real GDP measures
A) current output at current prices.
B) current output at base year prices.
C) base year output at current prices.
D) base year output at current exchange rates.

Question

Quizplus · Accepted Answer

Real GDP measures current output at base year prices, which allows for a comparison of output over time without the influence of inflation. Therefore, option B is the correct answer as it measures the real value of goods and services produced in an economy adjusted for inflation.

Real GDP Measures