Real GDP refers to
A) the value of the domestic output after adjustments have been made for environmental pollution and changes in the distribution of income.
B) GDP data that embody changes in the price level but not changes in physical output.
C) GDP data that do not reﬂect changes in both physical output and the price level.
D) GDP data that have been adjusted for changes in the price level.

Question

Quizplus · Accepted Answer

Real GDP refers to GDP data that have been adjusted for changes in the price level. This means that real GDP represents the value of domestic output in constant prices, which allows for comparisons of economic output over time without the distorting effect of inflation. Real GDP excludes the impact of changes in prices, which are reflected in nominal GDP.

Real GDP Refers to