The measure of production that values output using a base year is called:

Question

Quizplus · Accepted Answer

Real GDP values output using a base year adjusted for inflation to provide a more accurate reflection of economic growth. A nominal GDP, on the other hand, does not adjust for inflation and only reflects the value of output at current market prices. Value-added GDP is a measure that subtracts the value of intermediate goods from the value of final goods produced in an economy. Underground GDP refers to economic activity that is not captured by official statistics, such as illegal or informal economic activity.

The Measure of Production That Values Output Using a Base