What is the distinction between nominal GDP and real GDP?
What will be an ideal response?
Nominal GDP is the value of final goods and services produced in a given year valued at the prices of that year. Real GDP is the value of final goods and services produced in a given year when valued at the prices of a reference base year. By comparing the value of production in the two years at the same prices, we reveal the change in production.
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The monetary aggregate, M1, increases when
A) an individual cashes a check written by a business. B) an individual purchases clothes with a debit card. C) an individual switches funds from a savings account to a checking account. D) an individual buys groceries with a credit card.
In the above table, if the marginal factor cost is $96, how many workers would be hired?
A) 3 B) 4 C) 5 D) 2