lesson 12 - real vs nominal Flashcards
1
Q
nominal GDP
A
the market value of the final product
2
Q
real GDP
A
nominal GDP adjusted for the new prices
3
Q
GDP deflator
A
a price index used to adjust nominal GDP to real gdp
4
Q
base year
A
reference year, base year always equal to 100%
5
Q
current prices
A
prices of goods in a nation particular year
6
Q
constant prices
A
the prices from a base year used to calculate real GDP
