The ____ includes all the goods and services produced in the economy during a specific time where value of the goods and services is adjusted for inflation.
A) real GDP
B) nominal GDP
C) real GNP
D) nominal GNP

Question

Quizplus · Accepted Answer

Real GDP is the measure of economic output that takes inflation into account, thus it gives a more accurate picture of the economy's growth over time. Nominal GDP, on the other hand, does not adjust for inflation and measures economic output using current market prices. Real GNP and nominal GNP are similar concepts as GDP, but they measure economic output of a country's citizens instead of only the production within its borders.

The ____ Includes All the Goods and Services Produced in the Economy