Real GDP is the same thing as
A)total spending on all goods and services
B)constant-dollar GDP
C)net domestic product
D)nominal GDP adjusted for taxes
E)domestic income

Question

Quizplus · Accepted Answer

Real GDP is a measure of a country's economic output that is adjusted for inflation. It is calculated by taking the nominal GDP (total value of goods and services produced) and adjusting it for changes in price levels using a price index like the Consumer Price Index (CPI). This makes it possible to compare economic output over time without the distortion effects of inflation. Therefore, choice B, constant-dollar GDP, is the best answer as it refers to real GDP.

Real GDP Is the Same Thing as