Question

1. How is real GDP different from GDP? A. Real GDP takes inflation into account. B. GDP takes inflation into account. C. Real GDP uses utility rather than dollars as a unit of measurement. D. GDP only uses dollars as a measurement.

Answer 1

Real GDP takes inflation into account ( A )

Step-by-step explanation:

GDP ( gross domestic product ) is divided into two which are the Nominal GDP and the Real GDP. the Nominal GDP is the GDP that is calculated based on the monetary value of the goods and services produced at a given time without putting into consideration the factors of inflation and deflation in the market. while Real GDP is the GDP of a country or region that is used to calculate the value of finished goods and services produced in the country within a given time period it also puts into consideration before giving its final results the effects of inflation and deflation in the market.