When goods and services are evaluated at constant prices, the measured value is known as .........
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Real GDP.
When goods and services are evaluated at constant prices (i.e., prices of a base year), the resulting measure is called Real GDP.
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Real GDP accounts for inflation and reflects the true growth in the volume of production.
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It removes the effect of price changes, unlike Nominal GDP, which is calculated at current prices.