Economics Gdp Questions
The difference between nominal GDP and real GDP lies in the adjustment for inflation. Nominal GDP is the total value of goods and services produced in an economy, measured at current market prices. It does not account for changes in price levels over time. On the other hand, real GDP adjusts for inflation by measuring the value of goods and services produced in an economy using constant prices from a base year. Real GDP provides a more accurate measure of economic growth as it eliminates the impact of price changes, allowing for a better comparison of economic performance over time.