To examine how the total production of an economy has changed over time,it would be better to examine
A)real GDP.
B)nominal GDP.
C)GDP at current prices.
D)the GDP deflator.

Question

Quizplus · Accepted Answer

Real GDP takes into account inflation and provides a more accurate measure of economic growth over time. Nominal GDP and GDP at current prices can be misleading because they do not account for changes in the price level. The GDP deflator is a price index and can be useful for measuring changes in the overall price level of the economy, but it does not directly measure economic production.

To Examine How the Total Production of an Economy Has