Which Statement Best Describes Real GDP

question 93

Multiple Choice

Which statement best describes real GDP?

• A) Real GDP evaluates, at current prices, all goods and services produced in a base year.
• B) Real GDP evaluates, at base-year prices, all goods and services produced in the current year.
• C) Real GDP evaluates, at current prices, a current-year basket of goods and services.
• D) Real GDP evaluates, at current prices, a base-year basket of goods and services.

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Definitions:

Precise

Referring to the closeness of two or more measurements to each other, showing little variance when repeated.

Accuracy

How closely a measurement, calculation, or specification aligns with the true value or an established standard.

Significant Figures

The number of digits in a measurement that are known with a certain degree of reliability, used to express the precision of the measurement.

Significant Figures

The digits in a number that carry meaningful contributions to its measurement accuracy.