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:

Uniformly Distributed

A distribution where all outcomes are equally likely, and the variable's values are spread evenly over the range of possibilities.

Probability Density Function

A probability density function is a function that describes the probability of a random variable taking on certain values, used for continuous variables where the probability of any single value is zero.

Normal Approximation

A mathematical method used to approximate the binomial distribution with the normal distribution when the sample size is large and the probability of success is not too close to 0 or 1.

Binomial Distribution

A probability distribution describing the number of successes in a fixed number of binary, independent trials given a specific success probability.