Why would an economist use real GDP rather than nominal GDP to measure growth?

Social Studies

1 answer:

Leviafan [203]3 years ago

3 0

The correct answer is Real GDP reflects output more accurately than nominal GDP by using constant prices.

Gross domestic product (GDP) represents the sum (in monetary values) of all final goods and services produced in a given region (whether countries, states or cities) over a given period (month, quarter, year). GDP is one of the most widely used indicators in macroeconomics to quantify the economic activity of a region.

In the GDP count, only final goods and services are considered, excluding all intermediate consumer goods from the account. This is done to avoid the double counting problem, when values generated in the production chain are counted twice in the sum of GDP.

You might be interested in

Charlene is training for her first "Iron Man" triathlon. She exercises several hours a day, and often says that during the momen

Mama L [17]

Answer: Mihaly Csikszentmihalyi would describe these moments for Charlene as her undergoing the "Psychological Process of Flow"

Explanation: Mihaly Csikszentmihalyi is a psycologist from Hungary that identified and formed the Concept of Flow also referred to as being "in the zone"

According to the concept, a person carrying out an activity becomes fully engrossed and focused in that activity that he or she begins to enjoy it and gain fulfillment from it.

The activity referred to here is usually one with a set goal and feedback on the person's performance.

Here, the Flow Concept describes Charlene feeling because;

1. She has a set goal (training for Iron Man triathlon) and

2. She most likely has gotten feedback for her performance (because it's physical exercise, the results on her body would be visible).

So, Charlene's practice exercise for her triathlon has become fun and not just work because she has began to enjoy it and find fulfillment from it.

3 0

3 years ago

Read 2 more answers

What are two reasons that the nobles resisted the development of industry in Russia?

Gemiola [76]

Communists did not want the people to be able to gain more money than they allowed and the nobles wanted to make sure nobody moved up in their caste system

6 0

3 years ago

Read 2 more answers

Can you think of another social program that you would like to see provided for you?

Delvig [45]

What subject is this ?

5 0

3 years ago

Jerome, a 54-year-old male, has been found living on a small farm in the Mid-west, nearly 800 miles from his apartment in New Yo

Vinil7 [7]

Answer: Dissociative fugue

Explanation:

Dissociative fugue is a disorder where an individual experiences leaving their environment for some time coupled with experiencing amnesia and loss of memory considering what happened that period they were away.

It is a rare disorder.

Jerome's inability to remember the life he lived a certain time is referred to Dissociative fugue

5 0

3 years ago

4. Strategies for promoting generalization of tacts include:

Anton [14]

Answer: Strategies for promoting generalization of tacts include: Teaching different forms of the tact and varying teaching conditions. Multiple exemplar training involves teaching target words as: Receptive identification, tacts, and intraverbals.

Explanation: Please mark as brainliest! :)

3 0

3 years ago