Nominal versus real GDP. a. Explain the difference between nominal and real GDP. b. Explain in detail, how to calculate real GDP, including the factors used in the calculation. Look in the notes to find this – very straight forward. You need to explain the CPI since it is used to make the conversion. c. Explain what you can do with real GDP that you can’t do with nominal GDP and explain why not.
Nominal versus real GDP.
a. Explain the difference between nominal and real GDP.
b. Explain in detail, how to calculate real GDP, including the factors used in the calculation.
-
- Look in the notes to find this – very straight forward.
- You need to explain the CPI since it is used to make the conversion.
c. Explain what you can do with real GDP that you
can’t do with nominal GDP and explain why not.
Expert Answer
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