Question

The major difference between nominal GDP and real GDP is: nominal GDP measures the value of output with constant output levels, while real GDP measures output using current-year output levels. nominal GDP measures the value of output with current-year output levels, while real GDP measures output using constant output levels. nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices. nominal GDP measures the value of output in constant prices, while real GDP measures output using current-year prices.

Answer 1

Answer:

The correct answer is "nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices."

Explanation:

The real GDP growth is the value of all goods produced in a given year; nominal GDP is the value of all the goods taking price changes into account.

The nominal GDP is the value of all the final goods and services that an economy produced during a given year. It is calculated by using the prices that are current in the year in which the output is produced. The nominal GDP takes into account all of the changes that occurred for all goods and services produced during a given year. For example, a nominal value can change due to shifts in quantity and price.

The real GDP is the total value of all of the final goods and services that an economy produces during a given year, accounting for inflation. It is calculated using the prices of a selected base year.

The correct answer is "nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices."