What is the difference between real GDP and nominal GDP?
Not what you're looking for?
What is the difference between real GDP and nominal GDP? Does GDP accurately reflect our nation's productivity? Why or why not? Is there a relationship between GDP and the business cycle? If so, what relationship exists and how might a business manager use this information to increase their profits?
Purchase this Solution
Solution Preview
Real GDP is discounted to account for inflation while nominal GDP isn't. As a result real GDP growth is lower than nominal GDP growth from one year to the next. GDP is an approximation of our nation's productivity. GDP itself is the market value of all final goods and service produced in a country. The GDP might not take into account black market products that never make it into the ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.