Real GDP measures A. the value of final goods and services produced within the borders of a country, B. corrected for price changes. C. total dollar value of all goods and services produced within the borders of a country using current prices. D. total dollar value of all goods and services consumed within the borders of a country, adjusted for price changes. E. value of all goods and services produced in the world, using current prices.

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Business

Maya Andrade

31 July, 23:21

Real GDP measures A. the value of final goods and services produced within the borders of a country, B. corrected for price changes. C. total dollar value of all goods and services produced within the borders of a country using current prices. D. total dollar value of all goods and services consumed within the borders of a country, adjusted for price changes. E. value of all goods and services produced in the world, using current prices.

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Giselle Elliott · Answer 1

D. total dollar value of all goods and services consumed within the borders of a country, adjusted for price changes

Explanation:

Commonly, there are two figures used when it comes to measuring GDP (Gross Domestic Product). Nominal and Real GDP. Nominal GDP takes into account the price changes caused by inflation and deflation, this means that they will be adjusted using current pricing. Real GDP usually will make reference to market prices of a specific year.