When studying changes in the economy over time,economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services.In other words,economists want to study
A)nominal GDP.
B)real GDP.
C)the GDP deflator.
D)GNP.

Question

Quizplus · Accepted Answer

Real GDP adjusts for changes in prices, providing a more accurate measure of the total quantity of goods and services produced in the economy. Nominal GDP includes the effect of price changes, while the GDP deflator is a measure of the overall level of prices in the economy. GNP measures the value of all goods and services produced by a country's residents, regardless of where they are located.

When Studying Changes in the Economy Over Time,economists Want a Measure