To examine how the total production of an economy has changed over time, it would be better to examine

Question

Quizplus · Accepted Answer

Real GDP adjusts for inflation and provides a more accurate measure of the changes in production over time. Nominal GDP is affected by changes in prices and does not account for inflation. GDP at current prices and the GDP deflator are also affected by changes in prices and are not as reliable as real GDP for measuring changes in production. The Consumer Price Index measures changes in the cost of a basket of goods and services purchased by consumers, but it does not measure production.

To Examine How the Total Production of an Economy Has