The advantage of using real GDP over nominal GDP is that it ________.

Question

Quizplus · Accepted Answer

Real GDP adjusts for inflation, allowing for comparisons of economic growth over time. Nominal GDP only reflects current prices and does not take into account changes in prices over time. Real GDP is a better measure of economic growth because it provides a more accurate picture of changes in production and income over time. C is incorrect because while real GDP does adjust for inflation, it does not specifically take into account the distribution of income. D is incorrect because political party changes do not impact GDP calculations. A is incorrect because real GDP is not necessarily easier to calculate than nominal GDP.

The Advantage of Using Real GDP Over Nominal GDP Is