Question

Please answer this ASAP, Thanks: The difference between real and nominal Gross Domestic Product (GDP) is that:

Real GDP is measured in dollars of the day, while nominal GDP utilizes a base year.

Nominal GDP removes general price movements, while real GDP does not.

Nominal GDP reflects the dollars of the day and includes general price increases, while real GDP removes the inflationary effects of general price movements.

All of the above.

None of the above.

Answer 1

Ans is E

nominal GDP is the value of final goods and services produced and valued at the current prices whereas real GDP is the value of final goods and services produced but valued at the base year prices.Real GDP excludes inflationary effect on GDP