Real gross domestic product
A) is a measure of inﬂation.
B) will increase if the price level increases.
C) will increase if the level of output increases.
D) can change from one year to the next even if there is no change in output.

Question

Quizplus · Accepted Answer

Real gross domestic product (GDP) measures the value of all goods and services produced in an economy adjusted for inflation. It is therefore unaffected by changes in the price level, but will increase if the level of output increases. Real GDP can change from one year to the next even if there is no change in output if there is a change in the price level.

Real Gross Domestic Product