The real GDP is influenced by inflation.
When the nominal GDP increases it implies that prices have increased. Nominal GDP is current prices and real GDP takes prices changes into account.
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
If (nominal) GDP and real GDP are equal then average price levels are constant.
It means that inflation is negative, also known as deflation.
Real price is in a mud nominal price is in your FACE
When the nominal GDP increases it implies that prices have increased. Nominal GDP is current prices and real GDP takes prices changes into account.
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
If (nominal) GDP and real GDP are equal then average price levels are constant.
It means that inflation is negative, also known as deflation.
Real price is in a mud nominal price is in your FACE
nominal account.
nominal GDP uses current prices and thus may over- or understate true changes in output.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
real
Not necessarily. It can be of any type. Real, Personal or Nominal.
real accounts