ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Nominal GDP
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Real GDP
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GDP per capita
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None of the above
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Detailed explanation-1: -Nominal gross domestic product (GDP) is the value of all the final goods and services at current market prices. In other words, it is the GDP calculated at the current market prices. It takes into account factors such as inflation, price changes, changing interest rates, and money supply at the time of determining GDP.
Detailed explanation-2: -Nominal GDP is a macroeconomic assessment of the value of goods and services using current prices in its measure; it’s also referred to as the current dollar GDP.
Detailed explanation-3: -Nominal GDP is derived by multiplying the current year quantity output by the current market price.
Detailed explanation-4: -Nominal GDP is the total value of all goods and services produced in a given time period, usually quarterly or annually. Real GDP is nominal GDP adjusted for inflation. Real GDP is used to measure the actual growth of production without any distorting effects from inflation.