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.
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The GDP measure that sums up the value of goods and services evaluated at current year prices.
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None of the above.
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Detailed explanation-1: -Real GDP captures changes in quantities. The GDP deflator captures changes in the price level. Nominal GDP captures both changes in prices and changes in quantities.
Detailed explanation-2: -Real GDP. Real GDP is an inflation-adjusted measure that reflects the number of goods and services produced by an economy in a given year, with prices held constant from year to year to separate out the impact of inflation or deflation from the trend in output over time.
Detailed explanation-3: -Nominal GDP reflects the raw numbers in current dollars unadjusted for inflation. Real GDP adjusts the numbers by fixing the currency value, thus eliminating any distortion caused by inflation or deflation.
Detailed explanation-4: -Definition. nominal GDP. the market value of the final production of goods and services within a country in a given period using that year’s prices (also called “current prices”)
Detailed explanation-5: -The gross domestic product implicit price deflator, or GDP deflator, measures changes in the prices of goods and services produced in the United States, including those exported to other countries.