Consumption spending adjusted for inflation is known as ________.
A) investment
B) nominal consumption
C) real consumption
D) GDP

Question

Quizplus · Accepted Answer

Real consumption is consumption spending that has been adjusted for inflation, so that the changes in spending are reflective of changes in real purchasing power. A is incorrect because investment is a separate category of spending. B is incorrect because nominal consumption refers to consumption spending before adjusting for inflation. D is incorrect because GDP includes many components beyond just consumption spending.

Consumption Spending Adjusted for Inflation Is Known as ________