Question

Real gross domestic product _______.a. is a measure of inflation. b. can change from one year to the next even if there is no change in output. c. will increase if the price level increases. d. will increase if the level of output increases.

Answer 1

Answer:

a. is a measure of inflation

Explanation:

The GDP or gross domestic product is a macroeconomic measure that expresses the monetary value of the production of goods and services of final demand of a country (or a region) during a certain period of time.

It is one of the most widely used macroeconomic measures. It falls within what is called national accounting.

There are two types of GDP:

Nominal GDP: this is the monetary value of all goods and services produced by a country in the year in which the goods themselves are produced. If the nominal GDP is studied over time, in an inflation situation, a substantial increase in this indicator results, resulting in an increase in prices.

Real GDP: is the monetary value of all goods and services produced by a country at constant prices. This indicator is taken from constant prices as the basis for comparisons.