Asked by Ethan Scofield on Jul 04, 2024
Verified
Gross domestic product (GDP) that has been adjusted to account for the effect of inflation is known as _____.
A) the GDP deflator
B) real GDP
C) nominal GDP
D) per capita GDP
Inflation
An economic condition characterized by a general increase in prices and fall in the purchasing value of money.
GDP Deflator
A measure of the price level for all domestically produced goods and services in an economy, indicating the rate of inflation or deflation.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and growth.
- Assess the triggers and consequences of inflation and deflation.
- Identify the differences between GDP, GNP, and additional economic measures and their relevance.
Verified Answer
HB
Harish BhajanaJul 09, 2024
Final Answer :
B
Explanation :
Real GDP is the measure of a country's economic output adjusted for price changes, such as inflation or deflation, providing a more accurate reflection of an economy's size and how it's growing over time.
Learning Objectives
- Assess the triggers and consequences of inflation and deflation.
- Identify the differences between GDP, GNP, and additional economic measures and their relevance.