Question

Real GDP is the value of final goods and services produced in a year expressed in the prices of that same year. during a recession. minus depreciation. expressed in the prices of a base year. minus the value of all the intermediate goods produced

Answer 1

Answer:

The correct answer is: expressed in the prices of a base year.

Explanation:

Real GDP is an inflation-adjusted measure to calculate changes in economic output. It calculates the value of final goods and services produced in an economy in a year expressed in the prices of a base year.

Real GDP does not include changes in the price of products as it is calculated at constant prices.  

Nominal GDP, on the other hand, is calculated on the basis of current prices. It includes changes in prices and is not inflation-adjusted. That is why real GDP is preferred over nominal GDP.