Australian real GDP
A)measures the change in the price level over time.
B)precisely measures the improving standard of living in Australia.
C)includes the value of underground production but excludes the value of leisure time.
D)excludes the value of underground production and leisure time.
E)is not as accurate as nominal GDP when measuring standard of living changes over time.

Question

Quizplus · Accepted Answer

Real GDP excludes the value of underground production (illegal activities) and leisure time. It is considered a better measure of economic output than nominal GDP because it adjusts for changes in prices (inflation) over time, allowing for a more accurate measurement of changes in the standard of living.

Australian Real GDP