Question

An increase in government spending shows up exclusively as a change in real gdp when?

Answer 1

It shows up exclusively when the price level is assumed to be constant.

What is real GDP?

Real gross domestic product (real GDP), also known as constant-price GDP, inflation-corrected GDP, or constant dollar GDP, is an inflation-adjusted metric that measures the value of all goods and services generated by an economy in a given year (expressed in base-year prices).

Real GDP is a macroeconomic metric that accounts for inflation and quantifies the worth of the products and services generated by an economy over a given time period. In essence, it calculates a nation's overall economic production after accounting for price changes.

Governments analyze economic growth and purchasing power over time using both nominal and real GDP as measurements. The GDP price deflator, also known as the implicit price deflator, which tracks changes in prices for all products and services produced in an economy, is used to do this.

A quarterly report on GDP is released by the Bureau of Economic Analysis (BEA), and it includes headline data figures that reflect real GDP levels and real GDP growth.

Therefore, An increase in government spending shows up exclusively as a change in real GDP when the price level is assumed to be constant.

For more information on GDP, refer to the given link:

brainly.com/question/14326341

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