Which statement best describes the difference between Nominal and Real GDP? Group of answer choices Nominal GDP is Real GDP that has been adjusted to remove the distorting effects of inflation. Real GDP is calculated using current market prices, while Nominal GDP is calculated using the average prices of the last 5 years. Nominal GDP is calculated using current market prices, while Real GDP is calculated using the prices of the previous year. Real GDP is Nominal GDP which has been adjusted to remove the distorting effects of inflation.

Q: The key difference between the GDP deflator and the CPI is that a. the GDP deflator reflects the…

A: The main difference between the CPI and GDP deflator is, GDP deflator reveals the price of all…

Q: GDP is a total quantification of the production of goods and services of a country in a period of…

A: GDP or Gross Domestic Product refers to the sum total of the money value of all final goods and…

Q: The GDP deflator measures A .the changes in aggregate prices of all final goods and services…

A: GDP deflator: - it is a measure of the change in the price of goods and services produced in an…

Q: The financial sector of a country is very small. Local banks refuse many clients because they do not…

A: GDP stands for gross domestic product. This metric is used to measure the overall development of the…

Q: Suppose you are reading a magazine showing a figure that plots the U.S. GDP from 1900 to 2012 in…

A: GDP shown in 2005 chained dollars means that the real GDP is calculated with chain weighted price…

Q: Which of the following would be counted as part of the GDP?     a) the value of your fixing your…

A: Gross Domestic Product(GDP) is defined as the market value of all the goods and services produced in…

Q: Changes in nominal GDP are caused by price changes and changes in real GDP are caused by quantity…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: If Gdp deflator is equal  at 90   it means that  :  1- stagflation  2- deflation  3- inflation…

A: The GDP deflator measures the changes in prices for all of the goods and services produced in an…

Q: a. The income-based estimate of Metrica's GDP is $1 b. The expenditure-based estimate of Metrica's…

A: Solution is given below step by step.

Q: the following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: The Real GDP can be calculated by the given equation.

Q: Gross Domestic Product  If nominal GDP in 2005 was $13095.4 billion and the GDP deflator (price…

A: Nominal GDP in 2005 = $13095.4 billion GDP deflator = 100  Nominal GDP includes both the growth and…

Q: Personal Consumption Expenditures $ 400 Government Purchases 128 Gross Private Domestic Investment…

A: The National Money is the total amount of income earned by a country from economic activity over the…

Q: In 2020 and 2021, a country produced two products: X, Y, and Z. The quantities produced and the…

A: The table containing the value of X, Y and Z is given as YearQuantity of X in UnitsPrice of X in…

Q: Assume the following economy produces only hat and that the base year is year 2. Use the table below…

A: Gross Domestic Product id the total amount of goods and services produced and sold in an economy…

Q: Question a) Calculate GDP Deflator of 2009. b) Calculate the Growth rate of real GDP of 2009. c)…

A: Gross domestic product is the final combination of goods and services in a country. GDP is an…

Q: The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau…

A: Economic Growth: Economic growth refers to the increase in a country's output of goods and services…

Q: Year Price of Hot Dogs Quantity of Hot Dogs Price of Hamburgers Quantity of Hamburgers 2018 $1 100…

A: "GDP represents the market value of all the final commodities and services produced in an economy at…

Q: Distinguish between the following concepts as they apply to Elements of Macroeconomics. Give…

A: There are two statistics which are used to measure the change in level of prices…

Q: Each scenario occurred this year but fails to fit one of the criteria for the definition of U.S.…

A: For a good or service to be included in the GDP, it requires to have market value, it should be a…

Q: If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP. True or…

A: Nominal GDP is the value of GDP calculated in current price.  Real GDP is the value of GDP…

Q: An economy produces only food and fun. The table shows the quantities produced and prices in 2018…

A: The method of comparing the present domestic productivity with that of the previous year's…

Q: If Gdp deflator is equal at 120   it means that  :  1- stagflation  2- deflation  3- inflation…

A: The GDP price deflator measure the changes in prices by comparing nominal GDP to real GDP.

Q: The following table shows the outputs and prices of three products produced by an economy in 2018,…

A: To compute the GDP, we require to multiply the quantity of every product by its price and after…

Q: Which approach to calculating GDP focuses on summing the value added at each stage of production? a)…

A: The Gross Domestic Product (GDP) can be calculated using different approaches, each offering a…

Q: Use the table to answer the questions. Assume firms pay all profits out to resource owners, there is…

A: The total financial or market value of all finished merchandise and services made within a country's…