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To fill in the blanks with calculations.
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Answer to Problem 12P
125, $8000, $18000, $77008, $10000
Explanation of Solution
Year | Nominal GDP (in billions_ | Real GDP (in billions) | |
2008 | 90.9 | $7000 | $77008 |
2009 | 100 | $8000 | $8000 |
2010 | 125 | $10000 | $8000 |
2011 | 140 | $14000 | $10000 |
2012 | 150 | $18000 | $12000 |
Introduction:
The full form of GDP is gross national product and it is the way that measures the total economy's output of goods and services in the country. The Nominal GDP is the economy's output without the inflation adjustments. The Nominal GDP is usually higher than the real GDP as inflation is a positive number. Real GDP is inflation adjusted measure that has the value of goods and services produced by an economy in a particular given year.
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