The concept of "real GDP" refers to:
A)the value of nominal GDP after adjustments have been made for changes in the price level.
B)the value of nominal GDP minus the environmental pollution and changes in the distribution of income.
C)the value of the current total output plus the value of intermediate goods.
D)GDP data which reflect changes in both physical output and environmental damage.

Question

Quizplus · Accepted Answer

Real GDP refers to the value of nominal GDP after adjustments have been made for changes in the price level. This is done by using a price index, such as the Consumer Price Index (CPI), to remove the effects of inflation from nominal GDP. By doing so, real GDP provides a more accurate measure of economic output over time.

The Concept of "Real GDP" Refers To