Real GDP Is

question 2

Multiple Choice

Real GDP is:

• A)​the base year market value of all final goods and services produced domestically during a given period.
• B)​the current year market value of all final goods and services produced domestically during a given period.
• C)​usually greater than nominal GDP.
• D)​the current year market value of domestic production of intermediate goods.

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Definitions:

Profits of Industry

The total earnings of companies within a specific sector after subtracting costs and expenses.

Resources Employed

Refers to the allocation and utilization of resources such as labor, capital, and materials to produce goods and services.

Output of Industry

The total amount of goods and services produced by an industry or sector within a specific period, often used to gauge economic health and productivity.

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.