Ask Question
BusinessBusiness
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

+3
Answers (1)
  1. 17 December, 01:45
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “How does nominal GDP differ from real GDP? a. nominal GDP includes intermediate goods and real GDP does notb. Nominal GDP is based on ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A satellite is any object that revolves around another object in space. a. True b. False
Answers (1)
In a long-run equilibrium, A. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production. B.
Answers (1)
You own a house that you rent for $1,675 per month. The maintenance expenses on the house average $315 per month. The house cost $242,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $264,000.
Answers (1)
How the quality of perfomance within the business function can contribute to a successful business, marketing, public relation, general manangement?
Answers (1)
As an application of the "number of days" lost measure of risk discussed in "Scientific View of Risk" consider the following 2015 statistic. Today's life expectancy is well into the 80s.
Answers (1)
New Questions in Business
What are the order of in which management can take legal action against a employee
Answers (1)
What best describes an entrepreneur? a. Someone who initiates and assumes the financial risk of a new business enterprise. b. A person who knows how to evaluate which stocks to purchase. c. Someone who can expertly manage other people's investments.
Answers (1)
JRN Enterprises just announced that it plans to cut its dividend from $3.50 to $2.50 per share and use the extra funds to expand its operations.
Answers (1)
Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate.
Answers (1)
Appalachian mountain goods has paid increasing dividends of $.10, $.12, $.15, and $.20 a share over the past four years, respectively.
Answers (1)
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.
Sign Up Forgot Password?