ECONOMICS
GDP
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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 per capita
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Real GDP
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GDP per capita
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Detailed explanation-1: -The total value of all the final goods and services that are produced by an economy during a given year that accounts for inflation is known as real GDP. It is calculated using the prices of a selected base year.
Detailed explanation-2: -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-3: -Real GDP is equal to the sum of the base year price * current year quantity of all the goods.
Detailed explanation-4: -Nominal GDP measures aggregate output (meaning the value of all of the final goods and services produced) using current prices.
Detailed explanation-5: -GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). GDP is usually calculated by the national statistical agency of the country following the international standard.