Question

Which of the following statements about GDP is correct?
A) Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
B) Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
C) Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
D) Nominal GDP values production at current prices, whereas real GDP values production at constant prices.

Answer 1

D) Nominal GDP values production at current prices, whereas real GDP values production at constant prices. – This statement about GDP is correct.

The value of economics of a country can be measured by the Gross Domestic Product or GDP ratio.

Within a specific time period, the GDP can sum up the total market value of different segments or domestic products and identify the growth rate of the same.

Answer 2

Explanation:

option D is correct answer.

GDPmeans gross domestic price or product.