Real GDP differs from nominal GDP in that nominal GDP measures
A)output adjusted for inflation.
B)real output of goods and services.
C)output of goods and services at current prices.
D)real income adjusted for changes in the price level.

Question

Quizplus · Accepted Answer

Nominal GDP measures the total output of goods and services at current market prices, whereas real GDP measures the total output of goods and services adjusted for inflation. Real GDP is a more accurate measure of an economy's growth because it takes into account the effects of inflation.

Real GDP Differs from Nominal GDP in That Nominal GDP