U.S.real GDP
A)precisely measures the improving standard of living in the United States.
B)measures the change in the price level over time.
C)excludes the value of underground production and leisure time.
D)is not as accurate as nominal GDP when measuring standard of living changes over time.
E)includes the value of underground production but excludes the value of leisure time.

Question

Quizplus · Accepted Answer

U.S. real GDP measures the total value of all goods and services produced in the economy, adjusted for inflation. However, it excludes the value of underground (or illegal) production and leisure time. Therefore, choice C is the correct answer. Choices A, B, D, and E are incorrect as they inaccurately describe U.S. real GDP.