Asked by
Brial Michelle
on Oct 13, 2024
Verified
If GDP rose from $4 trillion in the base year to $6 trillion in the current year,and there was some inflation during this period,the most accurate statement that can be made about the change in real GDP between the base year and the current year is that
A) it rose.
B) it fell.
C) if it rose,it rose less than 50 percent.
D) it rose by 50 percent.
E) it rose by more than 50 percent.
Inflation
The speed at which the overall price level of goods and services increases, thereby diminishing the buying power.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and how it's grown over time.
- Contrast nominal GDP with real GDP and the GDP deflator.
Verified Answer
MR
Learning Objectives
- Contrast nominal GDP with real GDP and the GDP deflator.