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Primarily this happens because of increase in prices.
Nominal GDP= GDP using current prices.
Real GDP= GDP that takes prices changes into account.
Let me give a very simple example, let's say:
In year 1, the country produced 10 computers for 10 dollars each. So GDP for year 1= $100
In year 2, the country only produced 9 computers for 15 dollars each. So GDP for year 2 = $135 (9x15)
In year 2,the nominal GDP has increased from $100 to $135. However, we measure real GDP using a base year, in this case year 1, so we use the price of year 1 to find the real GDP for year 2.
Using prices of year 1 we have: 9 computers x $10 each = $90 of real GDP.
Finally, you see that even nominal GDP for year 2 was $135, the real GDP was $90.
What else can I help you with?
Why a producer would continue to increase output even though the marginal cost?
...of production may be rising? Answer: Because of increase in demand.
Why countries' well being differ even though their nominal GDP is same?
some countries have too many people and little smarts or just smart but smartness that's not needed or can be used in there country.
What is an example of an inelastic good?
A good is inelastic if after a 1% increase in price the quantity demanded falls by less than 1%. Essentials such as petrol tend to be inelastic as do addictive products such as cigarettes.
Does a consumer buy more even when price falls?
Yes
Explain why you calculate the nominal GDP and the real GDP?
If we compared the GDP's of two periods, we can not really tell if there was an increase or decrease from the previous period, hence the GDPP(snd stsndsrd of living). Real GDP can tell us this because we take a reference base year price and calculate the GDP of the periods. What is actually considered here now is if there 's a change in the quantity of goods. If we used just the nominal GDP: which is the 'true GDP' that period, it will be impartial to do comparism because there might have been an increase in price but same quantity of goods (or even less). Remember, when we talk about GDP, we basically mean the total amount of production: think of it as quantity of production.
Is age nominal or ordinal?
Ordinal. Though more likely interval or even ratio scale.
How does the Declaration of Independence differ from the Declaration of Sentiments?
even though the seneca falls....................is based on the declaration of...................... the seneca falls....................is about both men and women r equal
Why a producer would continue to increase output even though the marginal cost?
...of production may be rising? Answer: Because of increase in demand.
Can account receivable and cash flow decrease even though sales increase?
no, both increases
How do you pronounce Reina in Spanish?
rrrrrrraynah, indicating the "trilled r" at the begining of the word. Even though it is not a "rr", when an "r" falls at the beginning of a word, it usually is sounded as though it were a "rr".
Why countries' well being differ even though their nominal GDP is same?
some countries have too many people and little smarts or just smart but smartness that's not needed or can be used in there country.
What happened to social programs in America after World War 2?
Programs continued to increase,even though the economy was stronger
What is an example of an inelastic good?
A good is inelastic if after a 1% increase in price the quantity demanded falls by less than 1%. Essentials such as petrol tend to be inelastic as do addictive products such as cigarettes.
Does marina love vivi muuuuuuuuuuito mais que tudo?
yeeeeeeeeeeeeeeeees she does even though he thinks people don't yell Geronimo when a tree falls :)
Stpatrick's day commonly falls during the christian seasonal observation of what?
St. Patrick's day commonly falls during the Christian seasonal observation of Lent. When St. Patrick's day falls on a Friday, Christians are usually given permission to eat meat on that Friday even though it is generally avoided during Lent.
How you can use though in a sentence?
Even though I am smart, I do not know everything.
Why is it thermodynamically possible for some ionic solids to dissolve even though the solution process is endothermic?
Even though dissolving some ionic solids is an endothermic process (requires energy input), it is still thermodynamically possible due to the increase in entropy that occurs when the solid breaks apart into individual ions in solution. The increase in entropy favors the dissolution process, even if it requires energy input to overcome the lattice energy holding the solid together.
