Question

U.S. real GDP A. measures the change in the price level over time. B. precisely measures the improving standard of living in the United States. C. excludes the value of underground production and leisure time. D. is not as accurate as nominal GDP when measuring standard of living changes over time. E. includes the value of underground production but excludes the value of leisure time.

Answer 1

Answer: Option A

Explanation: In simple words, real GDP refers to the macroeconomic measures under which the Economist adjust the GDP for the price change over time.

Under such a GDP, the economist tries to find out the volume of output increase rather than the value of the output increase by adjusting the produced commodities for the inflation.

Hence the correct option is A.