What is the difference between real GDP and nominal GDP

Answers

Answer 1
Answer: Real Gross Domestic Product or real GDPis a measure of the value of economic output like inflation or deflation ofprices . Nominal GDP on the other hand is a figure which has not been adjustedfor any inflation. Nominal GDP is also known as the ”current dollar GDP”sometimes, “chained dollar GDP”.Adjustment in real GDP transforms thenominal GDP, the money-value measure an index for total output quantity.The main difference between these two GDP’s is that real values are adjusted forinflation while nominal is otherwise.


Answer 2
Answer:

Final answer:

Nominal GDP measures a country's total economic output at current prices, including inflation or deflation, while real GDP adjusts this value to remove the effects of price changes, providing a more accurate measure of 'real' economic growth.

Explanation:

In economics, Real GDP and Nominal GDP are two ways of measuring a country's economic output. Nominal GDP is the total value of all final goods and services produced in an economy in a given year, measured in current prices. Prices can be affected by inflation or deflation, which are changes in the general level of prices of goods and services. Therefore, Nominal GDP can change simply because prices change.

On the other hand, Real GDP is GDP adjusted for inflation or deflation. This gives a more accurate measure of economic growth, as it removes the effect of price changes and therefore provides a measure of 'real' output. This makes Real GDP a better measure of economic growth over time, as it reflects changes in the quantity of goods and services rather than changes in their prices.

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Related Questions

Label each of the following scenarios with the set of symbols that best indicates the price change and quantity change that occur in the scenario. In some scenarios, it may not be possible from the information given to determine the direction of a particular price change or a particular quantity change. We will symbolize those cases as, respectively, “P?” and “Q?” The four possible combinations of price and quantity changes are:. LO3.5P Q? P? Q P Q? P?Q On a hot day, both the demand for lemondae and the supply of lemonade increase. On a cold day, both the demand for ice cream and the supply of ice cream decrease. When Hawaii’s Mt. Kilauea erupts violently, the demand on the part of tourists for sigtseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases. In a hot area of Arizona where they generate a lot of their electicity with wind turbines, the demand for the electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster.
Which of the following is not an objective of financial reporting? Multiple Choice 1. To provide information about the fair value of an entity’s economic resources.2. To report financial performance from the perspective of cash inflows and outflows. 3. To provide indirect information about management’s performance in meeting its responsibilities for stewardship of the entity.Incorrect 4. To provide information that is useful to investors and creditors.
Which of the following accurately describes a capital gain?OA. A rise in the standard of living OB. The difference between costs and revenues OC. An upward trend in prices OD. An increase in the value of an investment
Which of the following would be an advantage of leasing a vehicle? Automatic ownership interest in the car Unlimited mileage on the car No need to meet credit requirements Lease payments are likely to be lower than finance payments
When looking to finance higher education, what is the best order to look for funding sources

Goods returned to us by our customers can be identified the Income Statement as a. cash returns
b. credit returns
c. purchase returns
d. sales returns​

Answers

C. Purchase Returns

Fabian is proud of his slides and wants to print them out for his audience. However, he has 25 slides and an audience of 50. What advice do you have for Fabian?A. Print out 25 copies and ask the audience to share.
B. Go through the slides slowly so the audience doesn’t miss any information.
C. Explore the printing options since you have the ability to print multiple slides on one page.
D. Put all of your text into a word processing document and print that.

Answers

The correct set of advice for Fabian will be to explore for all the printing options available, as multiple slides can be printed on one page. So, the correct option is C.

Fabian should explore the options that would allow him to make his slides reach the maximum and full audience in a way that the experience of the audience is not hampered negatively.

Advise for Fabian

As Fabian is facing the issue of scarcity of slides by fifty percent, it will be advisable for him to look for cheaper printing options that can be used for printing.

With the invention of technology, it has become possible to ab able to print multiple slides on one page, which will also allow him to solve his problem of scarcity of slides compared to his audience.

Hence, the correct option is C that Fabian is advised to explore the multiple printing options available, which will allow him to print multiple slides on one page and reach his audience in full capacity.

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Answer:

c is the answer

Explanation:

Your _____ is the full amount of money that you earn without anything taken out for items such as taxes and Social Security. gross pay net pay

Answers

Your gross pay is the full amount of money that you earn without anything taken out for items such as taxes and social Security.

After you deduct Gross Pay with items such as taxes and social security, then you get your net pay. 

Benet Division of United Refinery Company's operating results include: controllable margin, $200,000; sales $2,200,000; and operating assets, $800,000. The Benet Division's ROI is 25%. Management is considering a project with sales of $100,000, variable expenses of $60,000, fixed costs of $40,000; and an asset investment of $150,000. Should management accept this new project?

Answers

Answer:

No

Explanation:

As we know that

Return on investment = Net income ÷ Investment

where,

Net income is

= Sales - variable expense - fixed cost

= $100,000 - $60,000 - $40,000

= $0

And, the asset investment is $150,000

So, the return on investment is

= $0 ÷ $150,000

= 0%

The required return on investment is 25%

So, the  new project should not be accepted as the return on investment is 0%

The government increases taxes. What might be a reason for this change in fiscal policy?A deficit due to improving nationwide public transportation
A deficit due to more monies flowing in from investors
A surplus due to greater amounts of income from exports
A surplus due to more government spending on building roads

Answers

Answer:

A deficit due to improving nationwide public transportation

Explanation:

Fiscal policy is the instrument by which the government collects taxes to use resources in areas that require public investment. When the government spends more than it collects, there is a deficit. To finance this deficit, one of the government's alternatives is to raise taxes. On the contrary, when the government spends less than it collects, there is a surplus. In this case, the government could lower taxes.

In the case narrated, the government raises taxes. Therefore, this is feasible to cover the public account deficit. Fiscal faith only refers to direct government spending in areas of public interest, such as transportation, education, health, welfare, and so on. The relationship between the government and the financial market is not considered in the fiscal deficit, it is separated into another specific account. Therefore, the only correct alternative is that the government has raised taxes to cover the fiscal deficit of transport infrastructure spending, which is a sector that requires direct government investment.

A; a deficit due to improving nationwide public transportation. Surplus in this case means that we have left over money.

Marketing entails an exchange. A) True B) False

Answers

Answer: B) False

Explanation: The reason why is because marketing means buying.