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All three of the $5000 billion GDP figures (Production, Income and Spending) are in ____________ dollars.

User DeHaar
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Answer: D inflation adjusted, real

Step-by-step explanation:

The GDP calculation acquired in the flow chart of $5,000 billion were all done after adjusting for inflation which means that they were in real dollars.

Inflation adjusted GDP enables more effective comparison between different periods as inflation tends to inflate the prices of goods and services and can make one think that the economy has grown more than it actually has.

When the value of GDP is inflation adjusted, it can then be seen just how much the economy improved or shrank.

User Sharoya
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