Question

PLEASE HELP QUICKLY!

Real GDP is ___ but nominal GDP is not

-total output
-adjusted for price changes
-total income

Answer 1

Real GDP is total output

Answer 2

-adjusted for price changes

Step-by-step explanation:

GDP is the sum of the values of all goods and services produced by an economy in a given period. The difference between nominal GDP and real GDP consists in the fact that nominal GDP is calculated at current prices, while real GDP is calculated at constant prices, ie it is calculated under a base year chosen to eliminate the effect of inflation. A more consistent assessment considers real GDP. The measurement technique consists of deflating GDP by a price index that allows measuring only changes in quantities and not in market prices. So we can say that the real GPD is calculated at adjusted price changes.