What is the difference between real GDP and nominal GDP?
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?
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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 ...
What is the difference between real GDP and nominal GDP? Does GDP accurately reflect our nation's productivity?
During 2004, the national average gas price rose from $1.50 a gallon to $2.25 a gallon. The government has stated that the high price of gas will remain as it is. Discuss how this cost influences your decision to buy a new car. Based on your budget, would you buy the large car that gets 7 miles per gallon or the car that gets 25 miles per gallon? Explain.
What is the difference between real GDP and nominal GDP? Does GDP accurately reflect our nation's productivity? Explain your answer.
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