Real GDP or total output in any year is equal to:

Question

Quizplus · Accepted Answer

Real GDP is calculated by multiplying the number of worker-hours by labor productivity. This is because real GDP measures the total output of goods and services produced in a given year, and this output is a result of the number of worker-hours and their productivity. Choice A and D are incorrect because they only take into account one of these factors, and Choice B is incorrect because it multiplies productivity and output together, rather than taking into account worker-hours.

Real GDP or Total Output in Any Year Is Equal