Real GDP vs. Nominal GDP: Choosing the Right Measure for Studying the Economy

Real GDP vs. Nominal GDP

Prev Question Next Question

Question

If you were asked to study the economy over the past five years, you would use the real GDP series rather than the nominal GDP series because

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C

It is almost always true that economists are interested in real changes rather than nominal changes because nominal changes look at both changes in the amount of goods and services produced and prices. Real changes focus only on changes in the amount of goods and services produced.