Which of these describes the real gross domestic product?
A) gross domestic product from which depreciation costs have been deducted
B) gross domestic product that has been adjusted for changes in the price level
C) gross domestic product from which taxes have been deducted
D) gross domestic product that has been adjusted for changes in the exchange rate
E) gross domestic product that has been adjusted for changes in interest rates

Question

Quizplus · Accepted Answer

Real gross domestic product (GDP) is GDP that has been adjusted for changes in the price level, i.e. it is adjusted for inflation. This allows for a more accurate comparison of GDP over time. Option A refers to net domestic product, option C refers to net national product, and options D and E refer to GDP adjustments that are not commonly used.

Which of These Describes the Real Gross Domestic Product