Which of the following best describes real GDP?
A) Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system
B) Total quantity of goods and services produced by an economic system
C) Total value of all goods and services produced within a given period by a national economy through domestic and international factors of production
D) Total value of all goods and services produced within a given period by a national economy, through domestic factors of production measured in current dollars, or with all components valued at current prices
E) Total value of all goods and services produced by a national economy within a given period, calculated to account for changes in currency values and price changes

Question

Quizplus · Accepted Answer

Real GDP is adjusted for changes in currency value and price changes (inflation or deflation), providing a more accurate reflection of an economy's size and how it's growing over time, unlike nominal GDP which is measured in current dollars without adjusting for inflation.

Which of the Following Best Describes Real GDP