Asked by Fahim Sultanzada on Jun 20, 2024
Verified
Real GDP is the same as
A) M.
B) V.
C) P.
D) Q.
Real GDP
Gross Domestic Product adjusted for inflation, which provides a more accurate reflection of an economy's size and growth rate over time.
- Acquire knowledge about how the money supply (M), velocity of money (V), price level (P), and real output (Q) interrelate in the calculation of GDP.
Verified Answer
MG
Melissa GobleJun 21, 2024
Final Answer :
D
Explanation :
Real GDP is a measure of a country's economic output adjusted for inflation. It is therefore represented by Q, which is nominal GDP adjusted for inflation. Choice A (M) represents the amount of money in circulation in an economy, choice B (V) represents the velocity of money, and choice C (P) represents the price level.
Learning Objectives
- Acquire knowledge about how the money supply (M), velocity of money (V), price level (P), and real output (Q) interrelate in the calculation of GDP.