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15 September, 23:29

The difference between nominal GDP and real GDP is that:

a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.

b. nominal GDP adjusts the value of goods for changes in the price level and real GDP does not.

c. real GDP accounts for foreign production in a country and nominal GDP does not.

d. nominal GDP accounts for foreign production in a country and real GDP does not.

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  1. 15 September, 23:41
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    a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.

    Explanation:

    The nominal GDP is calculated by using current prices without adjusting the inflation factor int the prices of goods that are accounted for in the total GDP value. On the other hand the real GDP is calculated by adjusting inflation int he pricesof the goods which included in total GDP value. So the correct option is a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.
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Home » Business » The difference between nominal GDP and real GDP is that: a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not. b. nominal GDP adjusts the value of goods for changes in the price level and real GDP does not.
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