Asked by Fantasia Jessie on Jun 14, 2024
Verified
Which of these is the most ideal measure of aggregate output?
A) Disposable income
B) Nominal GDP
C) Personal income
D) The real GDP
E) Gross national product
Nominal GDP
Nominal GDP is the market value of all final goods and services produced within a country in a given period, measured in current prices.
Aggregate Output
The total value of all goods and services produced in an economy over a specific time period.
- Analyze macroeconomic indicators, such as GDP, and comprehend their significance for economic policy and outcomes.
Verified Answer
JC
Jared CousarJun 15, 2024
Final Answer :
D
Explanation :
The real GDP is the most ideal measure of aggregate output because it accounts for changes in prices and adjusts for inflation, providing an accurate representation of the actual production output of a country over time. Disposable income, personal income, and gross national product do not directly measure aggregate output, while nominal GDP only measures the value of goods and services produced without accounting for changes in prices.
Learning Objectives
- Analyze macroeconomic indicators, such as GDP, and comprehend their significance for economic policy and outcomes.
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