Real GDP is:
A)the nominal value of all goods and services produced in the economy.
B)the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation.
C)that aggregate output which is produced when the economy is operating at full employment.
D)always greater than nominal GDP.

Question

Quizplus · Accepted Answer

Real GDP is the measure of the total value of all goods and services produced in an economy corrected for inflation or deflation. It is the measure of the economy's output adjusted for changes in prices. It provides a more accurate picture of an economy's growth or contraction than nominal GDP, which does not take inflation or deflation into account.

Real GDP Is