Real GDP is GDP adjusted for
A) changes in the quality of goods and services.
B) value-added during a previous year.
C) inflation.
D) imports.
E) changes in the cost of intermediate goods and services.

Question

Quizplus · Accepted Answer

Real GDP is adjusted for inflation in order to give an accurate picture of the economy's growth. By adjusting for inflation, real GDP accounts for changes in prices and allows for comparisons over time.

Real GDP Is GDP Adjusted for