Question

Which of the following best explains

real GDP?
A. The amount of trading by the Stock Market.
B. The unadjusted GDP for inflation.
C. The increase in the federal funds rate.
D. The adjusted GDP for inflation.

Answer 1

Option D, The adjusted GDP for inflation, is correct.

Step-by-step explanation:

Option D is correct because the real gross domestic product (GDP) is a measure that accounts for the inflation and it exhibits the value of commodities that are produced in a given period of time and that are expressed in base year price or usually measured with constant price or constant dollars. However, the real gross domestic product (GDP) gives a more accurate assessment of the economic growth as compared to the nominal GDP.