If real GDP was $800 billion in 2011 and $850 billion in 2012,what likely occurred from 2011 to 2012?
A)Total production of output increased.
B)Either total production rose, or there was inflation, or both.
C)The economy experienced inflation.
D)The value of intermediate production increased.

Question

Quizplus · Accepted Answer

The increase in real GDP from $800 billion in 2011 to $850 billion in 2012 indicates that the total production of output increased. Since real GDP is adjusted for inflation, this increase in GDP suggests that there was a real increase in the quantity of goods and services produced in the economy.

If Real GDP Was $800 Billion in 2011 and $850