1
Question
Which of the following is true about real GDP?
Statement I: It is adjusted for changes in prices.
Statement II: It is always equal to nominal GDP.
Statement III: It increases whenever aggregate output increases.
Which of the following is true about real GDP?
Statement I: It is adjusted for changes in prices.
Statement II: It is always equal to nominal GDP.
Statement III: It increases whenever aggregate output increases.
Open in App
Solution
The correct option is D I and III
Real GDP is a macroeconomic measure of the value of output, economically adjusted for price changes. It increases whenever the aggregate output increases. Only statement II is incorrect.
I and III
Real GDP is a macroeconomic measure of the value of output, economically adjusted for price changes. It increases whenever the aggregate output increases. Only statement II is incorrect.
Suggest Corrections
0
