Which of the following statements about real GDP and nominal GDP is correct?
A. Nominal GDP is the value of output measured in constant prices.
B. Real GDP is the value of output measured in constant prices.
C. Real GDP is the value of output measured in current prices.
D. Real GDP can give a distorted view of economic activity because of price level changes.
Answer:B
Which of the following statements about real GDP and nominal GDP is correct?
A. Nominal GDP is the value of output measured in constant prices. B. Real GDP is the value of output measured in constant prices. C. Real GDP is the value of output measured in current prices. D. Real GDP can give a distorted view of economic activity because of price level changes.