### Calculate aggregate quantities in real terms

Assignment Help Macroeconomics
##### Reference no: EM132136813

Question: To study a macroeconomy we calculate aggregate quantities in real terms because?

1) it is then easier to take logarithms

2)it is the only way to reconcile the three approaches to measuring GDP

3) we want to get rid of the illusion of price effects

4) we want to concentrate on the production of real goods, as opposed to services

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