Which prices are used to measure goods and services in calculating GDP?
A) past year prices
B) current prices
C) average prices
D) projected prices

Question

Quizplus · Accepted Answer

Current prices are used to measure goods and services in calculating GDP. This means that the value of goods and services produced in a given year are calculated at the prices that existed during that year. This allows for an accurate representation of the actual economic activity that occurred during that time period. Prices from previous years or projected prices are not used in GDP calculations as they do not reflect the current economic activity. Average prices may be used in some calculations, such as calculating inflation rates, but they are not used in GDP calculations.

Which Prices Are Used to Measure Goods and Services in Calculating