explain why nominal gdp and real gdp growth rates are sometimes different? when can they be the same?
Answers
Answered by
0
Answer: what is your question I don't understand your question
Explanation:
Answered by
0
The nominal GDP and real GDP growth rates are sometimes different since the nominal GDP does not take inflation into consideration while measuring the value of output during a certain period of time. Inflation can also lead to increase in prices of goods that impacts the GDP of growth rate
Explanation:
- In nominal GDP the current price is considered for finding the output during a certain time period in the country.
- On the other hand the real GDP is found out by taking into account the total output produced during a time period within the country based on a base market price that is pre-determined
- For finding the economic growth of the country it is necessary to use the data of real GDP growth since it takes into consideration the affect of inflation on the prices of goods and gives an accurate data.
To know more about GDP
What is GDP, how is GDP calculated ?who is measuring GDP of India?
https://brainly.in/question/12273944
Similar questions