When economists speak of changes in GDP measured in constant dollars, they mean thata. the price level is constant. b. the growth rate of money GDP has been adjusted for changes in population. c. money GDP is constant. d. a price index has been used to adjust money GDP for the effects of inflation.

Question

Talia Bautista

Business

8 April, 07:16

When economists speak of changes in GDP measured in constant dollars, they mean thata. the price level is constant. b. the growth rate of money GDP has been adjusted for changes in population. c. money GDP is constant. d. a price index has been used to adjust money GDP for the effects of inflation.

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Answers (1)

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Leonardo Ramsey · Answer 1

the price level is constant.

Explanation:

GDP is the total value (price x quantity) of goods & services produced by an economy during a period of time.

GDP measured at constant dollars is Real GDP i. e at constant price. Constant price is the base year price.

This GDP is a good measure rather than fluctuating price GDP, as it reflects change in only the quantity of goods & services and not price rise i. e Inflation.