Real GDP Measures the

question 218

Multiple Choice

Real GDP measures the

• A) total profits earned by all businesses valued using prices from a single year.
• B) changes in the prices of output measured in dollars.
• C) general upward drift in prices.
• D) value of total production linked to prices of a single year.

---

Definitions:

Balance Of Payments

A record of all transactions made between one particular country and all other countries during a specified period, showing the total inflows and outflows of money.

Net Investment Income

The profit gained from investments after subtracting related expenses such as interest, taxes, and fees, indicating the actual earnings from investment activities.

Net Unilateral Transfers

Financial transfers made by a country without expecting or receiving anything in return, often in the form of aid or remittances.

Balance On Capital Account

A measurement of the financial transactions that cause a change in the ownership of assets between residents and non-residents.