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Answer of tutorial 2.docx

Answer of tutorial 2.docx - Answer 1 The meaning of Nominal...

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Answer 1. The meaning of Nominal GDP is the aggregate market value of the economic output produced in a year within the boundaries of the country while Real GDP refers to the value of economic output produced in a given period, adjusted according to the changes in the general price level . Nominal GDP is gross domestic product measured in current prices while Real GDP is the gross domestic product expressed in constant or unchanging prices. Next, the difference between nominal and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP. Real GDP is a good indicator of economic growth but Nominal GDP cannot be analysed easily. 2. Intermediate goods- Products that are purchased for resale or further processing or manufacturing, not included in the calculation of GDP. Underground economy - illegal sales of goods and services which is call the black market.
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  • Spring '16
  • ungku
  • Gdp, gross domestic product

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