If GDP rises only because prices increase which measure gives a better assessment of welfare?

Correct answer: Real GDP

Nominal GDP is calculated using current prices, so it can rise even when the physical volume of production is unchanged. Real GDP values output at constant or adjusted prices and removes the effect of general price changes. It therefore gives a better indication of whether the economy is producing more goods and services, which is more relevant for welfare. Option B is correct; the other measures do not isolate real output.