KakaoTalk_20190914_164012915.png - Question 14 If prices have been rising since the base year for GDP(which was years ago which will be smaller nominal

# KakaoTalk_20190914_164012915.png - Question 14 If prices...

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Unformatted text preview: Question 14 If prices have been rising since the base year for GDP (which was years ago), which will be smaller? - nominal GDP First, recall that in the base year for real GDP that real and nominal GDP has the same value. Also, keep in mind that real GDP always uses prices from the base year to value items in GDP while nominal GDP uses prices from the year in question. For a speciﬁc example, currently 2009 is the base year for real GDP in the U5. If you're looking at GDP in 2015, then you'd use the amounts produced in 2015 (i.e.the &quot;quantities&quot; -- like number of cars produced, the number of doctor visits, the number of meals eaten in restaurants, etc). You'd use 2009 prices to compute real GDP but 2015 prices to compute nominal GDP. Thus, as prices have risen since 2009, real GDP would be less than nominal GDP. 1swer \ real GDP cannot say ...
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• Fall '10
• staff
• gross domestic product, Value added

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