Question

Tracking the ____________ over time is important because it is closely tied with other economic variables and provides a general idea of the nation’s well-being.

Answer 1

Answer:

The correct answer is: real GDP.

Explanation:

Nominal GDP is the value, at market prices, of the production of final goods and services produced in a country during a certain period of time, which is usually one year, while real GDP is the value of said production at prices constant. This means that the first, the nominal, reflects the increases or decreases in these prices, if there is inflation or deflation, respectively, while real GDP is based on the prices of a year and allows a comparison of the production of a given country. in different periods of time, by isolating the changes in prices, perfectly reflecting the net purchasing power, regardless of price changes over time.