Question

Calculating the nominal GDP as opposed to the real GDP helps clarify actual A. revenue earned in past quarters. B. measure of input in terms of actual revenue. C. earnings achieved through outsourced labor. D. measure of output in terms of actual dollar value.

Answer 1

The correct answer is D. Real GDP adjusts for inflation and measures the value of goods and services produced in terms of constant prices.

Step-by-step explanation:

The correct answer is D. The main difference between nominal GDP and real GDP is that nominal GDP measures the value of goods and services produced in terms of current market prices, while real GDP adjusts for inflation and measures the value of goods and services produced in terms of constant prices.

Real GDP provides a more accurate measure of economic output because it eliminates the effects of price changes over time. By adjusting for inflation, real GDP helps to clarify the measure of output in terms of actual dollar value.

Answer 2

D. measure of output in terms of actual dollar value.