ECONOMIC GROWTH Flashcards
1
Q
What is the difference between real and nominal GDP?
A
Nominal GDP is the market value (money-value) of all final goods and services produced in a geographical region, usually a country. Real GDP is a macroeconomic measure of the value of output economy, adjusted for price changes
2
Q
How do you calculate real GDP?
A
Nominal GDP / the inflator or deflator
