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2.1.2 Macroeconomic indicators

Why is real GDP used instead of nominal GDP when comparing output across years?

A

Nominal GDP measures total output using current prices, including the effect of inflation.

B

Real GDP measures total output after adding the effect of inflation.

C

Real GDP measures total output after removing the effect of inflation.

D

Real GDP measures total output after removing the effect of population growth.

2.1.2 Macroeconomic indicators Flashcards

  1. A Level
  2. /Economics
  3. /2.1.2 Macroeconomic indicators

Flashcards for AQA A Level Economics 2.1.2 Macroeconomic indicators, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 25 cards, matched to the AQA A Level Economics (7136) specification.