alculating real GDP growth require Select one o a estimating

alculating real GDP growth require Select one: o a. estimating the GDP based on unadjusted price levels O b. adjusting GDP for changes in the CPl O c. adjusting GDP for changes in the price level of all the items that go into GDP O d. measuring the GDP with investment. government consumption and investment, and foreign trade.

Solution

Real GDP growth requires (b) adjusting for changes in the CPI.

Real GDP = GDP / (1 + Inflation since base year) and the CPI (Consumer Price Index) measures prices from a base year