Real gross domestic product:
A) Is a measure of inflation
B) Will increase if there is an increase in the price level
C) Will increase if there is an increase in the level of output
D) Can change from one year to the next even if there is no change in output

Question

Quizplus · Accepted Answer

Real gross domestic product (GDP) is a measure of the total output of goods and services produced by an economy adjusted for inflation. It indicates the economic performance of a country. It is calculated by measuring the value of all final goods and services produced in an economy in a given time period, adjusted for inflation. Real GDP will increase if there is an increase in the level of output, as it measures the quantity of goods and services produced in an economy, not their price levels. Real GDP can change from one year to the next even if there is no change in output because of changes in the price level.

Real Gross Domestic Product