Which of the following statements is true ?

Question

Quizplus · Accepted Answer

Real GDP is adjusted for changes in the general level of prices due to inflation. A) is incorrect because the inclusion of intermediate goods and services into GDP calculations would overestimate our nation's production level, not underestimate it. B) describes the income approach, not the expenditures approach. D) is incorrect because real GDP is calculated by dividing nominal GDP by the GDP deflator, not multiplying.

Which of the Following Statements Is True