Economics Real Vs Nominal Gdp Questions
Government debt does not directly affect nominal GDP. Nominal GDP is a measure of the total value of goods and services produced in an economy at current market prices. Government debt, on the other hand, represents the accumulation of past budget deficits and is a measure of the amount of money the government owes to its creditors. While government debt can indirectly impact the economy and potentially influence nominal GDP through factors such as interest rates, government spending, and fiscal policy, it does not have a direct impact on the calculation of nominal GDP.