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lorie mccoy
on Oct 13, 2024

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Real GDP and GDP differ because the former

A) includes transactions in the underground economy.
B) has been adjusted for changes in the average price level.
C) includes the effects of the trade deficit.
D) excludes net exports.

Real GDP

Gross Domestic Product adjusted for inflation, which represents the value of all goods and services produced within a country's borders in a given period, measured in constant prices.

GDP

Gross Domestic Product, the total value of all goods and services produced by a country over a specific time period.

Average Price Level

An economic measure that calculates the weighted average of prices across a basket of goods and services, often used to identify inflation or deflation in an economy.

  • Appreciate the relevance of the GDP deflator and its importance in demarcating real GDP from nominal GDP.
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Adrina Mensah-kingOct 20, 2024
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