Real GDP Is

question 52

Multiple Choice

Real GDP is

• A) the nominal value of all real goods produced in the nation in a year.
• B) Nominal GDP corrected for changes in the average of overall prices.
• C) a misnomer since all GDP figures have to be in dollar values.
• D) the value of output in current dollars.

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Definitions:

Loanable Funds

This refers to the resources or funds available for borrowing in the financial markets, used for investments and purchases.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Future Value

The worth of an asset or cash on a future date that has the same value as a certain amount presently.

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows, given a specified rate of return.