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GDP: Group of answer choices real GDP is calculated by multiplying nominal GDP by the GDP...

GDP:

Group of answer choices

real GDP is calculated by multiplying nominal GDP by the GDP deflator

real GDP is adjusted for changes in the price level

nominal GDP can only change if there is a change in prices

real GDP is GDP per person

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Answer #1

Option b) real GDP is adjusted for changes in the price level.

The correct statement is real GDP is adjusted for changes in the price level.

Real GDP is calculated by dividing and not multiplying nominal GDP by the GDP deflator. Real GDP is an inflation adjusted measure that reflects the values of all goods and services produced in an economy in a given year expressed in base year prices and is referred to as inflation corrected or constant price or constant dollar GDP.

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