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Nata [24]
4 years ago
7

_________ values in economics are those that have been adjusted to remove the impact of inflation so that meaningful comparisons

can be made..
Business
1 answer:
aivan3 [116]4 years ago
5 0

Answer:

Real values are those that have been adjusted to remove impact of inflation.

Explanation:

Real values are the value of goods and services produced / consumed in a period which are adjusted for inflation.

Real values are very useful figures as these are required to calculate growth in Gross Domestic Product (GDP), personal incomes etc.

Real value is obtained by removing removing impact of increase in price level over the period by adjusting with deflator as defined in below example.

Example

Value of goods and services produced in an economy 2019 USD 100 billion

Value of goods and services produced in an economy 2018 USD 80 billion

Inflation in 2019: 5%

So the real growth in GDP: {(100 - 80) / 80} - 5% = 20%.

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