Question

If real gdp in a year was $3,668 billion and the price index was 112, then nominal gdp in that year was approximately

Answer 1

The nominal GDP in that year will be $4018 billion.

What is Nominal GDP?

• Nominal gross domestic product is GDP calculated using the most recent market prices. GDP measures the monetary worth of all the goods and services a nation produces. Nominal GDP differs from real GDP in that it considers inflation, which represents how quickly prices are rising in an economy.
• The monetary worth of the products and services produced is the standard way to calculate GDP.
• Nominal GDP can overstate the growth rate because it does not account for the rate of price increases when comparing one period to another.
• Growing pricing rather than increasing the number of goods and services produced may cause nominal GDP growth from year to year.
• Nominal GDP is the starting point, whereas real GDP includes price changes.

we know that

Nominal GDP = Real GDP × Price index

Nominal GDP = $3668 × .112

Nominal GDP =  $4018

hence, the nominal GDP in that year will be $4018 billion.

To learn more about Nominal GDP with the given link

brainly.com/question/15171681

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