Which of the following is a true measure of national output? a. GNP at market price b. GDP using base-year prices c. GDP in future dollars d. Nominal GNP

When it comes to measuring national output accurately, GDP using base-year prices is often the most reliable since it adjusts for inflation, allowing for a more accurate comparison of economic performance over time. This method focuses on the real growth of an economy, showing how much more was produced than in a previous year without the distortion of price changes. On the other hand, you might be surprised to know that nominal GNP can be misleading. It measures the country's total economic output without adjusting for inflation, making it hard to determine true growth or to compare across years effectively. It can give the illusion of a growing economy, even when inflation is the main driver behind the increase in numbers!