In determining real GDP, economists adjust the nominal GDP by using the
A) national productivity index.
B) wholesale (producers') price index.
C) GDP price index.
D) consumer price index.

Question

Quizplus · Accepted Answer

Economists adjust nominal GDP using the GDP price index or the implicit price deflator, which measures the average price level of all goods and services included in the GDP composition. It takes into account changes in both prices and changes in the composition of output. The other choices, such as the national productivity index, wholesale price index, and consumer price index, are not used to adjust nominal GDP.

In Determining Real GDP, Economists Adjust the Nominal GDP by Using