Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?
What will be an ideal response?
Nominal GDP can change because of either quantity changes or price changes. When there is inflation, nominal GDP overstates the increase in total production.
Economics
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Refer to Table 1-1. What is Lydia's marginal cost if she decides to stay open for an extra two hours instead of one hour?
A) $10 B) $20 C) $25 D) $40
Economics
Opportunity cost is best defined as
A) the sum of the dollar values of all alternatives given up when choices are made. B) the cost of producing the purchased goods. C) the next highest valued alternative when a choice is made. D) the dollar price of the purchased item.
Economics