Real GDP measures the total quantity of final goods and services produced, meaning it accounts for the physical output of the economy. B is incorrect because the dollar value of GDP is measured by nominal GDP, which includes the effects of inflation. C is incorrect because real GDP is adjusted for inflation, so it does not represent the total income received at current prices.

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Real GDP Measures

Question 51

Multiple Choice

Real GDP measures

A) the total quantity of final goods and services produced.
B) the dollar value of the economy's output of final goods and services.
C) the total income received from producing final goods and services at current prices.
D) All of the above are correct.

Correct Answer: