Q. Which one of the following statements correctly describes ‘Real GDP’?

[A] The total market value of all final goods and services produced within a country in a given year, adjusted for inflation.

[B] The total market value of all goods and services produced within a country in a given year, regardless of inflation.

[C] The total income earned by residents of a country in a given year.

[D] A measure of the total wealth of a country.

Answer: A
Notes:

Explanation – Real GDP is a measure of a country’s economic output that has been adjusted to account for changes in the price level (inflation or deflation). It reflects the actual quantity of goods and services produced within a country, rather than the nominal value of those goods and services. By removing the effects of inflation, Real GDP provides a more accurate picture of a country’s economic growth and standard of living over time.

Source: The Hindu

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