..... GDP is the total value of all production in one year measured at current prices. ..... GDP is the total value of all production in one year adjusted for inflation.

GDP

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

____ GDP is the total value of all production in one year measured at current prices. ____ GDP is the total value of all production in one year adjusted for inflation.

A	real, nominal
B	real, per capita
C	nominal, per capita
D	nominal, real

Explanation:

Detailed explanation-1: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

Detailed explanation-2: -Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. In other words, it doesn’t strip out inflation or the pace of rising prices, which can inflate the growth figure.

Detailed explanation-3: -Nominal GDP measures aggregate output (meaning the value of all of the final goods and services produced) using current prices.

Detailed explanation-4: -Nominal GDP is derived by multiplying the current year quantity output by the current market price. In the example above, the nominal GDP in Year 1 is $1000 (100 x $10), and the nominal GDP in Year 5 is $2250 (150 x $15).

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

GDP