Ask Question
BusinessBusiness
7 April, 02:24

GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. How is this possible?

+2
Answers (1)
  1. 7 April, 05:25
    0
    Inflation was higher in 1982

    Explanation:

    GDP is a measure of the sum value of goods and services produced in a country in a period. In calculating GDP, economists add up the total number of products and services produced and multiply them with their prices. The result is nominal GDP. The figures indicated for 1981 and 1982 are nominal GDP values.

    The actual value of output is measured by real GDP. Real GDP is nominal GDP that is adjusted for inflation. In 1982, the nominal GDP was higher, but the output was lower. The rise in GDP value in 1982 is a result of high prices used in the calculation. Inflation is the reason why GDP was reported as a higher figure in 1982 than in 1981, even though output was lower in 1982.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. How is this possible? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
While the economies of countries like the United States are generally considered capitalist, they are not pure market economies. True or False?
Answers (2)
The financial systemlong dasheither financial markets or financial intermediarieslong dashprovides savers and borrowers with all of the following except: A.
Answers (1)
Enzo Design Corporation reports the following cost information for March: Cost of Goods Manufactured $ 85 comma 000 Finished Goods Inventory, March 1 4 comma 000 Finished Goods Inventory, March 31 2 comma 650 Work-in-Process Inventory, March 1 9
Answers (1)
Which of the following is NOT a required element of the MLA style of Internet citation? A. The date of accessing the information B. The owner or operator of the website C. The website's URL D. The author of the article if it is available
Answers (1)
Marty's, a clothing company, has a number of outlets that are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company.
Answers (2)
New Questions in Business
What role have public speeches served in ancient societies?
Answers (2)
What is the total annual value of goods and services produced in a country called? A. Gross Domestic Product B. Gross National Product C. Personal Disposable Income D. Gross National Income
Answers (1)
Marketing ethics refers to the moral or ethical dilemmas that might arise in a business setting, according to various moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons
Answers (1)
n a semantic priming task, A. presenting one word interferes with identifying a related word in a lexical decision task. B. presenting one word makes it easier to identify a related word in a lexical decision task. C.
Answers (1)
he actual cash received from cash sales was $10,680 and the amount indicated by the cash register total was $10,648. Journalize the entry to record the cash receipts and cash sales.
Answers (1)
Home » Business » GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. How is this possible?
Sign Up Forgot Password?