Asked by Blake Waldman on May 22, 2024
Verified
Real gross domestic product (GDP) is measured in terms of _____.
A) current-year prices
B) base-year prices
C) foreign currencies
D) the quality of goods produced
E) hours of employment
Base-Year Prices
Prices of goods and services from a specific base year, used to calculate real values and remove the effect of inflation over time.
Real GDP
Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in a specified period.
Measured
Quantitatively determined or estimated through a standard or unit of measurement.
- Apprehend the fundamental difference in assessing GDP by employing prices from the actual year in comparison to those from a chosen base year.
Verified Answer
DS
Destinee S RobinsonMay 22, 2024
Final Answer :
B
Explanation :
Real GDP is calculated using base-year prices in order to remove the effect of inflation on economic growth.
Learning Objectives
- Apprehend the fundamental difference in assessing GDP by employing prices from the actual year in comparison to those from a chosen base year.