Question

Real gross domestic product:

A) will increase if the price level increases.
B) can change from one year to the next even if there is no change in output.
C) will increase if the level of output increases.
D) is a measure of inflation.

Answer 1

Answer: Option 'D' is correct.

Explanation:

Real gross domestic product is measure of inflation which reflects the value of goods and services produced in an economy in a particular year. It is basically known as base year prices.

As it is measured on base year prices.

It is also known as inflation corrected GDP.

Hence, Option 'D' is correct.