Changes in real GDP are used to measure
A)Inflation.
B)Price level changes.
C)Business cycles.
D)Population growth.

Question

Quizplus · Accepted Answer

Changes in real GDP are used to measure business cycles, as they reflect the fluctuations in economic activity over time. Increases in real GDP indicate expansionary periods, while decreases in real GDP indicate recessions. Real GDP is adjusted for inflation, so it is not directly used to measure inflation or price level changes. Population growth is not directly related to changes in real GDP.

Changes in Real GDP Are Used to Measure