179k views
5 votes
GDP uses current prices, while ________ GDP uses prices adjusted for inflation. (Insert one word in each

User Vagner
by
8.4k points

1 Answer

4 votes

Final answer:

GDP uses current prices, while real GDP uses prices adjusted for inflation.

Step-by-step explanation:

GDP uses current prices, while real GDP uses prices adjusted for inflation. Real GDP is a measure that accounts for changes in prices over time, allowing economists to accurately assess the level of output in a nation. By adjusting GDP for inflation, we can determine whether a country is truly producing more or if the increase in GDP is solely due to rising prices.

User John Ashmore
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.