Real GDP is
A) the nominal value of all real goods produced in the nation in a year.
B) Nominal GDP corrected for changes in the average of overall prices.
C) a misnomer since all GDP figures have to be in dollar values.
D) the value of output in current dollars.

Question

Quizplus · Accepted Answer

Real GDP is calculated by adjusting nominal GDP for changes in the overall price level, so that it reflects the actual increase in production. Therefore, B is the correct answer.

Real GDP Is