"Real GDP" is "nominal GDP" adjusted to a base years prices so that the real quantity...

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Question

"Real GDP" is "nominal GDP" adjusted to a base years prices so that the real quantity...

"Real GDP" is "nominal GDP" adjusted to a base years prices so that the real quantity growth can be determined independent of inflationary effects.

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True

False

business economics

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Answer 1

Answer #1

Real GDP is nominal GDP deflated by price index. Real GDP gives idea about actual physical output. Changes in Real GDP gives a better idea about economic growth. It does not take the changes in output value due to price changes.

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TRUE

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Answer 2

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"Real GDP" is "nominal GDP" adjusted to a base years prices so that the real quantity...