Real GDP means the value of goods and services is measured in ______ prices.
A) current
B) actual
C) constant
D) average

Question

Quizplus · Accepted Answer

Real GDP is measured in constant prices, which adjust for inflation over time. This allows for a more accurate comparison of economic output across different years. Current prices (A) reflect inflationary changes and do not provide an accurate comparison over time. "Actual" prices (B) is not a common economic term. Average prices (D) do not reflect changes in inflation and also do not provide an accurate comparison over time.

Real GDP Means the Value of Goods and Services Is