Question
With reference to the GDP, consider the following
statements: 1. Real GDP is the value of goods and services produced in the country in the past year at current prices. 2. Real GDP allows the quantities of production to be compared across time 3. Nominal GDP is the value of goods and services produced in the country in the past year calculated at base-year prices. Which of the statements given above is/are correct?Solution
Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year. Nominal GDP is the value of the final goods and services produced in a given year expressed in terms of the prices in that same year.
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