Asked by sunil singh on Jun 16, 2024
Verified
Nominal gross domestic product (GDP)is a better measure of growth in production than real GDP.
Nominal Gross Domestic Product (GDP)
The total worth of all end products and services created inside a country during a specified time frame, calculated in present-day prices without making revisions for inflation effects.
- Recognize and elucidate the elements causing variations between nominal and real GDP, and their consequences on the assessment of economic progress.
- Distinguish between nominal GDP, real GDP, and the GDP price index and their roles in economic analysis.
Verified Answer
EV
Elizabeth VelasquezJun 18, 2024
Final Answer :
False
Explanation :
Real GDP is adjusted for inflation, which allows for a more accurate comparison of economic output over time. Nominal GDP does not take inflation into account and can be misleading, as changes in GDP could be due to changes in prices rather than actual production.
Learning Objectives
- Recognize and elucidate the elements causing variations between nominal and real GDP, and their consequences on the assessment of economic progress.
- Distinguish between nominal GDP, real GDP, and the GDP price index and their roles in economic analysis.
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