Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.

Question

Ethen Snyder

Business

26 July, 11:26

Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.

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Booker · Answer 1

You would want to use Real GDP because it looks at the inflation and deflation due to price "changes" over the years. Nominal GDP only looks at the current market of today's economy. So with this being said you only want to use Real GDP if your looking back at the economy's history, but you would look at Nominal GDP if you wanted to know the current economy status.