Bob is measuring the GDP in 2018 by using the quantity of each final good and service produced in 2018, multiplied by the price at which the goods and services were sold in 2018. What type of calculation is Bob creating?

Question

Business

Allen Gregory

8 December, 01:45

Bob is measuring the GDP in 2018 by using the quantity of each final good and service produced in 2018, multiplied by the price at which the goods and services were sold in 2018. What type of calculation is Bob creating?

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Answers (1)

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Raine · Answer 1

Bob is calculating the nominal gross domestic product GDP for 2018.

Explanation:

The nominal GDP includes the market value of all the final and legal goods and services produced within a country during a certain period (generally a year). Since it uses current market values, it is not adjusted to inflation nor measures real GDP.