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17 December, 01:25

How does nominal GDP differ from real GDP? a. nominal GDP includes intermediate goods and real GDP does notb. Nominal GDP is based on current prices and real GDP is based on constant pricesc. nominal GDP includes only durable goods and real GDP includes durable and nondurable goodsd. nominal GDP is calculated using current output and real GDP is calculated using constant goods

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  1. 17 December, 01:45
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    The correct answer is option b.

    Explanation:

    The nominal GDP is a measure of economic growth. It shows the quantity of final goods produced in an economy at the current market prices. It is not inflation adjusted and thus includes fluctuations in price level.

    The real GDP on the other hand is exclusive of inflation. IT is a inflation adjusted measure and measures the growth in economic output at constant prices.

    So, the basic difference between the two is that nominal GDP is based on current prices, while real GDP is based on constant prices.
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Home » Business » How does nominal GDP differ from real GDP? a. nominal GDP includes intermediate goods and real GDP does notb. Nominal GDP is based on current prices and real GDP is based on constant pricesc.
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