What term describes the real growth in the volume of goods and services produced by an economy over a period?
Understand the Problem
The question seeks the term that accurately describes the actual increase in the quantity of goods and services an economy produces over a specific time frame. This is a concept related to economic growth and its measurement.
Answer
Real Gross Domestic Product (Real GDP)
The term that describes the real growth in the volume of goods and services produced by an economy over a period is Real Gross Domestic Product (Real GDP).
Answer for screen readers
The term that describes the real growth in the volume of goods and services produced by an economy over a period is Real Gross Domestic Product (Real GDP).
More Information
Real GDP is a macroeconomic measure of the value of output economy adjusted for price changes (inflation or deflation). This adjustment transforms the money-value, nominal GDP, into an index for quantity of total output.
Tips
A common mistake is confusing nominal GDP with real GDP. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation. Real GDP adjusts for inflation, providing a more accurate view of economic growth.
Sources
- Real GDP - (Principles of Macroeconomics) - Fiveable - library.fiveable.me
- Real GDP growth - Office for Budget Responsibility - OBR - obr.uk
- Real GDP Growth - (Principles of Macroeconomics) - Fiveable - fiveable.me
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