Asked by Benjamin Cohen on May 06, 2024
Verified
Which of these describes the real gross domestic product?
A) Gross domestic product from which depreciation costs have been deducted
B) Gross domestic product that has been adjusted for changes in the price level
C) Gross domestic product from which taxes have been deducted
D) Gross domestic product that has been adjusted for changes in exchange rate
E) Gross domestic product that has been adjusted for changes in interest rates
Real Gross Domestic Product
Real Gross Domestic Product (Real GDP) measures the value of all goods and services produced by an economy over a specific period, adjusted for inflation, reflecting the actual growth in economic output.
Price Level
An average of the current prices of goods and services in an economy, which can fluctuate with changes in production, demand, and inflation.
- Decode the significance and computation of price indices, and their contribution to the assessment of economic fluctuations.
- Interpret macroeconomic data, including GDP, and understand its implications for economic policy and performance.
Verified Answer
MB
Macjeck BoakyeiMay 11, 2024
Final Answer :
B
Explanation :
Real gross domestic product (real GDP) is the value of goods and services produced in an economy adjusted for changes in the price level. This allows for comparisons of GDP over different time periods without the distorting effects of inflation.
Learning Objectives
- Decode the significance and computation of price indices, and their contribution to the assessment of economic fluctuations.
- Interpret macroeconomic data, including GDP, and understand its implications for economic policy and performance.