Real GDP values current production at
A) current year prices.
B) the best estimate of next year's prices.
C) the average of price levels over the entire sample period.
D) base year prices.
E) the purchase price not the asking prices of goods and services.

Question

Quizplus · Accepted Answer

Real GDP values current production at base year prices, meaning it adjusts for inflation by using a fixed, constant price level as a benchmark to measure production changes over time. This allows for more accurate comparisons of economic growth between different years.

Real GDP Values Current Production at