Measuring total aggregate production in constant 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 constant dollars requires adjusting for inflation, which is achieved by using real gross domestic product (GDP). Real personal income does not measure total production, but rather the income of individuals. Nominal GDP is not adjusted for inflation, and nominal net domestic product measures production minus depreciation, but does not adjust for inflation.

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