If nominal gdp = $4.5 trillion and the gdp deflator is 150, then real gdp is equal to:

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Business

Lillian Compton

2 July, 21:32

If nominal gdp = $4.5 trillion and the gdp deflator is 150, then real gdp is equal to:

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Julia Hess · Answer 1

If nominal Gdp = $4.5 trillion and the

Gdp deflator is 150, then real Gdp is equal to 3 trillion. According to investopedia, "GDP stands for gross domestic product and is the measure of the total economic output of the goods and services of a country. GDP is usually expressed on an annual basis, but is sometimes expressed on a quarterly basis within a year". While Real GDP is defined as "equal to the economic output adjusted for the effects of inflation. Nominal GDP is economic output without the inflation adjustment". Lastly, Nominal GDP is defined as usually higher than real GDP because inflation is typically a positive number. Nominal GDP is used when comparing different quarters of output within the same year. When comparing the GDP of two or more years, real GDP is used because, by removing the effects of inflation, the comparison of the different years focuses solely on volume.