The Adjective Real, in the Term Real GDP, Is Used

question 51

Multiple Choice

The adjective real, in the term real GDP, is used to indicate that

• A)it is the perfect measure of what is produced.
• B)this measure of output is official as opposed to an unofficial measure.
• C)this measure of output is adjusted for the general increase in prices over time.
• D)this measure of output is adjusted for the government's economic involvement.
• E)it measures only real goods and services, not the value of those that can't be measured, such as a home-cooked meal.

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Definitions:

Excludable

A characteristic of a good or service that means it can be limited to only paying customers or those who meet certain criteria.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Individual Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by an individual consumer, holding other factors constant.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone and one person's use does not reduce its availability to others.