ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
current output at current prices.
|
|
|
current output at base year prices.
|
|
|
base year output at current prices.
|
|
|
base year output at current exchange rates.
|
Detailed explanation-1: -Real GDP is a measure of how much is actually produced. Real GDP measures aggregate output using constant prices, thus removing the effect of changes in the overall price level.
Detailed explanation-2: -Real gross domestic product is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year. Real GDP is expressed in base-year prices and is often referred to as constant price, inflation-corrected, or constant dollar GDP.
Detailed explanation-3: -Nominal GDP measures output using current prices, while real GDP measures output using constant prices.
Detailed explanation-4: -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-5: -A country’s nominal gross domestic product assesses the economic production in its economy but includes the current prices of goods and services in its calculation. GDP is typically measured as the monetary value of goods and services produced.