Asked by Felicia Rioza on Jun 05, 2024
Verified
The value of a country's final goods and services after adjusting for changes due to inflation is called its _____.
A) real GDP
B) nominal GDP
C) disposable income
D) net national product
E) full employment output
Real GDP
Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in a given year, expressed in base-year prices.
Nominal GDP
GDP based on prices prevailing at the time of production.
- Examine the consequence of changing price levels on the entirety of demand and output within an economy.
Verified Answer
TT
Tsion TesfayeJun 11, 2024
Final Answer :
A
Explanation :
Real GDP is the value of a country's final goods and services after adjusting for changes due to inflation, whereas nominal GDP is the value of a country's final goods and services without adjusting for changes due to inflation. Disposable income is the income available to households after taxes and transfer payments, net national product is the value of a country's final goods and services minus depreciation, and full employment output is the potential output of an economy when all resources are fully employed.
Learning Objectives
- Examine the consequence of changing price levels on the entirety of demand and output within an economy.