Nominal GDP ismultiple choiceadjusted for inflation, whereas real GDP is market or money value of all final goods and services produced by the economy in a given year.the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation.the sum of intermediate and final goods and services, whereas real GDP is only the sum of final goods and services.determined in the market, whereas real GDP is computed by a government agency.
Question
Nominal GDP ismultiple choiceadjusted for inflation, whereas real GDP is market or money value of all final goods and services produced by the economy in a given year.the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation.the sum of intermediate and final goods and services, whereas real GDP is only the sum of final goods and services.determined in the market, whereas real GDP is computed by a government agency.
Solution
The correct answer is: "Nominal GDP is the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation."
This is because Nominal GDP measures the value of all goods and services produced in an economy using the current prices during the year that they were produced. On the other hand, Real GDP adjusts this value for inflation to reflect the real quantity of goods and services produced. This adjustment allows for a more accurate comparison of economic output from one year to another.
Similar Questions
The difference between real and nominal GDP is that _____________.a.nominal GDP only accounts for citizens.b.nominal GDP uses price-levels of some base yearc.nominal GDP uses actual price-levelsd.real GDP also includes services, whereas nominal GDP only takes goods into account
Real GDP is the yearly production of final goods and services valued atGroup of answer choicescurrent prices.constant prices.expected future prices.the ratio of current prices to constant prices.
Which of following statements about Nominal and Real GDP are correct?i. If a country’s Nominal GDP increases, this country may produce more, less or even the same amount of goods and services.ii. Nominal GDP is always larger than Real GDP. iii. Nominal GDP is a widely used measure for a country’s economic performance using current prices, due to its convenience of calculation and interpretation.iv. Real GDP controls for changes in preferences and prices.Question 4Answera.i, iiib.i, ii, iiic.i, ii, iii, ivd.iii
Suppose that nominal GDP in an economy in year 1 is $500 million and in year 2 is $600 million. If the price level of the goods and services produced has increased from an index number of 120 to an index number of 130 then, Group of answer choiceswhile nominal GDP increased between year 1 and year 2, real GDP must have decreased.while nominal GDP has decreased between year 1 and year 2, real GDP must have increased.while prices of the goods and services have increased by 10% between year 1 and year 2, real GDP has decreased by only 5%.while there has been inflation over this period, real GDP has still increased.
Nominal GDP is: A. GDP adjusted for inflation B. GDP measured in current prices C. GDP adjusted for population size D. GDP measured in constant dollars
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