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Q: Calculating the nominal GDP as opposed to the real GDP helps clarify actual A. revenue earned in past quarters. B. measure of input in terms of actual revenue. C. earnings achieved
through outsourced labor. D. measure of output in terms of actual dollar value.
A: Given that GDP is defined as the value of currently produced goods and services, changes in GDP can result from changes in prices and/or changes in outputs. [ Positive growth in GDP due to increases in output is generally recognized as a Good, while increases in GDP due to price increases is generally recognized as a Bad. To distinguish between the two effects, the government generates two
measures of GDP, Constant $ GDP and Current $ GDP ]
AwesomeGuy400|Points 0|
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Asked 9/2/2013 6:35:48 PM
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