Question

Real Gross Domestic Product (GDP) is _____ adjusted for price changes. nominal GDP inflation the economic cycle

Answer 1

Answer;

Nominal GDP

Real Gross Domestic Product (GDP) is nominal GDP adjusted for price changes

Explanation;

• Gross domestic product refers to the market value of all final goods and services produced by resources within a country in a given period of time.
• Real GDP is the measure of the market value of all final goods and services produced in a given year, adjusted for price changes. It is not influenced by changes in the price like the case with nominal GDP. Together with unemployment and inflation, they  are the main statistics used by economist to assess the health of the economy.
• Nominal GDP on the other hand is a measure of gross domestic product in which the quantities of goods and services produced are valued at current year prices. In other words it has not been adjusted for inflation.