Measuring total aggregate production in current dollars uses which of the following measures?
A) real personal income
B) real gross domestic product
C) nominal gross domestic product
D) nominal net domestic product

Question

Quizplus · Accepted Answer

Measuring total aggregate production in current dollars requires using nominal gross domestic product (GDP), which is calculated by valuing goods and services at their current market prices without adjusting for inflation. Real GDP, on the other hand, adjusts for inflation and measures production in constant prices. Real personal income measures the purchasing power of individuals' income after adjusting for inflation, and nominal net domestic product is a measure of GDP minus depreciation.

Measuring Total Aggregate Production in Current Dollars Uses Which of the Following