Asked by Shontae Stallworth on May 17, 2024
Verified
If the real gross domestic product (GDP) for the base year is $3 trillion,then the nominal gross domestic product (GDP) for that year is _____.
A) −$.03 trillion
B) $0.3 trillion
C) $3 trillion
D) $30 trillion
E) $300 trillion
Base Year
A specific year against which economic growth is measured by comparing other years to it in terms of prices, outputs, or employment.
Nominal GDP
Gross Domestic Product measured at current market prices, without adjusting for inflation, reflecting the value of all goods and services produced by a country within a specific period.
- Absorb the principles and variances between nominal GDP and real GDP.
- Acquire insight into the distinct methodologies of estimating Gross Domestic Product by utilizing prices from the current year versus a predetermined base year.
Verified Answer
PJ
Perry JohnsonMay 19, 2024
Final Answer :
C
Explanation :
Nominal GDP for the base year is the same as the real GDP, so it would also be $3 trillion.
Learning Objectives
- Absorb the principles and variances between nominal GDP and real GDP.
- Acquire insight into the distinct methodologies of estimating Gross Domestic Product by utilizing prices from the current year versus a predetermined base year.