Why is it important to compute real GDP?

A) To know more about the composition of total output

B) To see if there is an improvement in product quality

C) To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

D) To keep track of the base-year statistic

Question

India

Business

11 January, 11:08

Why is it important to compute real GDP?

A) To know more about the composition of total output

B) To see if there is an improvement in product quality

C) To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

D) To keep track of the base-year statistic

+3

Answers (1)

Know the Answer?

Braedon Abbott · Answer 1

C. To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

Explanation:

Real GDP calculates the monetary value of all goods and services that a country produce within one year after adjusting it to inflation or deflation.

Knowing Real GDP often used as a measurement to find out the economic growth of a country. If the Real GDP is increased, it indicates that the people in that country become more productive and it is most likely that their disposable income is also increased.