Real GDP Is

question 172

Multiple Choice

Real GDP is

• A) the nominal value of all final goods and services produced in the economy.
• B) the nominal value of all final goods and services produced in the domestic economy, adjusted for inflation or deflation.
• C) that aggregate output that is produced when the economy is operating at full employment.
• D) always greater than nominal GDP.

---

Definitions:

Goods

Items or products that are produced to satisfy wants or needs of consumers. Goods can be tangible, like food and cars, or intangible, like services.

Services

Intangible and non-physical goods provided by individuals or companies, such as healthcare, education, and financial consulting.

Total Product

The total quantity of output produced by a firm or economy as a result of its production process.

Marginal Product

The additional output that is produced by adding one more unit of a factor, such as labor or capital.