Question

Suppose that nominal GDP is $1,000 in 2009 and $1,500 in 2010. If the overall price level increased by _____% between 2009 and 2010, we could say that real GDP _____. more than 50; increased 50; stayed constant less than 50; decreased 50; increased

Answer 1

50; stayed constant

Step-by-step explanation:

GDP is the total value of a country's output. Its calculation involves additions of all the finished goods and services produced in the economy per period. GDP is either expressed as either nominal or real. Nominal or stated GDP is the most commonly referred to when discussing economic growth.

Real GDP is nominal GDP adjusted for inflation. Calculation of real GDP involves the comparison of current GDP against the base year GDP. Real GDP gives a more realistic measure of economic growth as it accounts for changes in the price levels.