To compare levels of production from different years, the appropriate measure to use is:
A) nominal GDP.
B) real GNP.
C) GDP-GNP.
D) the GDP deflator.

Question

Quizplus · Accepted Answer

Real GNP is the appropriate measure to use as it controls for inflation and allows for a meaningful comparison of production levels across different years. Nominal GDP does not account for changes in price levels, GDP-GNP is not a valid measure, and the GDP deflator is a measure of inflation, not production levels.

To Compare Levels of Production from Different Years, the Appropriate