ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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prices have risen.
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output has risen.
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prices have risen but output has remained constant.
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prices have remained constant.
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Detailed explanation-1: -An increase in nominal GDP may just mean prices have increased, while an increase in real GDP definitely means output increased.
Detailed explanation-2: -Put simply, real GDP measures the total economic output of a country and is adjusted for changes in price.
Detailed explanation-3: -Real GDP can be calculated by adjusting nominal GDP by inflation. Real GDP can also be measured as a dollar or a percentage by calculating changes in real GDP from one period to the next. Real economic growth is used by policymakers to determine growth over time by comparing GDP from different time periods.
Detailed explanation-4: -Real GDP is a macroeconomic measure of the value of output, economically adjusted for price changes. It increases whenever the aggregate output increases.