Explain the meaning of Real GDP and Nominal GDP, using a numerical example.
example is must .
Answers
Answered by
2
Answer:
The real GDP is the total value of all of the final goods and services that an economy produces during a given year, accounting for inflation. It is calculated using the prices of a selected base year. ... Real GDP, therefore, accounts for the fact that if prices change but output doesn't, nominal GDP would change.
Answered by
1
Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation. Real GDP is nominal GDP, adjusted for inflation to reflect changes in real output. Trends in the GDP deflator are similar to changes in the Consumer Price Index, which is a different way of measuring inflation.
Similar questions
History,
4 months ago
English,
4 months ago
Social Sciences,
9 months ago
Social Sciences,
9 months ago
History,
1 year ago