Explore BrainMass
Share

Explore BrainMass

    Reason Nominal GDP is greater than the Real GDP

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Visit the Bureau of Economic Analysis Web site, http://www.bea.gov, and access the BEA interactively by selecting National Income and Product Account Tables. Select Frequently Requested NIPA Tables, and use Tables 1.1 and 1.2 to identify the GDP (nominal GDP) and real GDP for the past four quarters. Why was nominal GDP greater than real GDP in each of those quarters? What were the percentage changes in nominal GDP and real GDP for the most recent quarter? What accounts for the difference?

    Reason for Nominal GDP is greater than the Real GDP

    Reason for differences

    © BrainMass Inc. brainmass.com October 10, 2019, 12:06 am ad1c9bdddf
    https://brainmass.com/economics/economic-growth/reason-nominal-gdp-is-greater-than-the-real-gdp-279198

    Solution Preview

    Reason for Nominal GDP is greater than the Real GDP
    Usually, as we know Nominal GDP is calculated from the current price level and Real GDP is calculated from base year price level.
    In the recent period, Since the US economy has been being affected by financial crisis due to subprime mortgage crisis. The recession has forced the price level to come down and thereby inflation. Since the Nominal ...

    Solution Summary

    Reasons Nominal GDP is greater than the Real GDP are presented.

    $2.19