Nominal GDP V.S. Real GDP Flashcards
1
Q
Nominal GDP
A
the market value of all final goods and services produced in a year
2
Q
Real GDP
A
the market value of all final goods and services produced in a year WITH the consideration of price level changes
3
Q
How do you calculate GDP?
A
(PxQ)
4
Q
What is the price index implied in a ratio? Then, put in standard index form?
A
(Nominal GDP / Real GDP) x 100
5
Q
What is base index price?
A
100
