Contrast the nominal GDP and real GDP. Why do economists consider real gdp as a more reliable measure for comparing changes in the production level over a series of years?

(i) Real GDP in 2020-21 is:Yr = 61583×228.1/251.3 = 55897.66. (ii) GDP deflator is: Deflator = 61583/55897.66×100 = 110.17.(iii) Inflation rate is 110.17 - 100 = 10.17%.

3) Real GDP

1. The Real exchange rate of seven years is nominal exchange rate multiplied by the change in price level. 2. Effective exchange rate of currency j = Normalized exchange rate...

Nominal GDP=real GDP*deflator/1002500*140/100=3500Nominal GDP=3500

1.     GDP (Gross Domestic Product) is the total value of all goods and services produced within a country in a financial year.2.     GNP (Gross National Product) is the total value of finished...

False

The nominal GDP of Saudi has been increasing from $921 million in 1970 to $23,266 million in 2019, unlike the Real GDP which has ben affected with the increase of...

False

The GDP Deflator. The GDP deflator is a price index that measures inflation or deflation in an economy by calculating a ratio of nominal GDP to real GDP.

Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures...