What does the term 'real GDP' specifically reflect?

Real GDP specifically reflects economic output adjusted for inflation. This means it measures the value of all finished goods and services produced within a country's borders in a given time period, while eliminating the effects of price changes or inflation. By using constant prices from a designated base year, real GDP provides a more accurate representation of an economy's size and how it is growing over time, allowing for comparisons between different time periods without the distortion caused by fluctuating price levels.

The other options do not accurately capture the essence of real GDP. Total output without adjustment refers to nominal GDP, which includes the effects of inflation. The total income of citizens relates more to measures like Gross National Income (GNI) rather than GDP. Revenue generated through exports does not encompass the entire economic output of a country, which includes both domestic consumption and investment in addition to exports. Thus, real GDP is an essential metric for understanding economic performance in a way that reflects true growth by accounting for price level changes.