Real GDP
A)is the current dollar value of all goods produced by the citizens of an economy within a given time.
B)measures economic activity and income.
C)is used primarily to measure long-run changes rather than short-run fluctuations.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Real GDP measures the economic activity and income of an economy within a given time, adjusted for inflation. It does not consider changes in the value of money, only the changes in production. Real GDP is primarily used to compare long-term economic growth or decline, although it can also be used to track short-term fluctuations. A is incorrect because Real GDP adjusts for inflation, so it is not the current dollar value of all goods produced. C is incorrect because Real GDP can be used to measure short-run fluctuations as well.