Question

GDP uses current prices, while ________ GDP uses prices adjusted for inflation. (Insert one word in each

Answer 1

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.