Real GDP measures ________.
A)the total hours the average U.S.citizen works a year
B)the percentage of income produced by workers and firms
C)how slowly interest rates grow
D)the total market value of actual goods and services produced in an economy over a year
E)how rapidly the overall level of prices is rising

Question

Quizplus · Accepted Answer

Real GDP is a measure of the total market value of all final goods and services produced within an economy in a particular period of time (usually a year), adjusted for inflation (i.e., expressed in constant prices). It is a measure of the level of economic activity in a country and is often used as an indicator of a country's standard of living. Choices A, B, C, and E do not accurately describe what real GDP measures.

Real GDP Measures ________