I think GDP is a good measure of economic activity. GDP can measure the total spending on goods or services excluding the price changes with the two kinds of GDP, real and nominal GDP. Even when the price of the goods or services was changed from the previous year, the total spending on goods or services can be measured by GDP. However, we have to understand that if the base year we use was changed, the value of real GDP is also changed. Real GDP shows the value of total spending on goods or services only when we use the specific base year. We need to be careful not to be confused when we use the value based another years. The values are two entirely different things. sembra naturale?

Question

rachelpaczki · Accepted Answer

Most all of this is correct! A few changed I would make are using the word "has" in place of "was" in the sentence "Even when the price of the goods or services was changed." The second to last sentence is also confusing. I feel it would be better if it were either "...when we use the value based on other years" or "based on another year." Both of those have the same meaning. Good job!!

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