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The nominal GNP is the value of all the production valued at this year's prices. Real GNP is valued at prices of a base year. Thus, if an economy produces in year 1 2 oranges and 3 apples, at prices 5 and 6 respectively and in year 2, 4 oranges and 6 apples, at prices 9 and 8, then:
nominal GDP year 1=2*5+3*6=28nominal GDP year 2= 4*9+6*8=84Notice that you can not compare production between two years because prices increased. It is not correct to state that production multiply by 3. So you should compute real GNP at prices of year 1
Real GDP year 1 (at prices of year 1) = 28 (same as before)
Real GDP year 2 (at prices of year 1) = 4*5+6*6=56
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What is gnp deFlator?
The ratio of a country's nominal GNP to its real GNP, expressed as a percentage. It measures the percentage increase or decrease in the price of products and services by comparing the current GNP to a base period. By:- MAHMOOD KHAN LAHWOON, ZHOB
Current gnp and real gnp?
19956.5
What is the difference between the current GNP and real GNP?
The actual one is the one that the government uses and the real gnp is the one that is well the real one just not the one the government goes by.
What is nominal price and real price?
Real price is in a mud nominal price is in your FACE
How does the real interest rate relate to the nominal interest rate?
A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not.
What is gnp deFlator?
The ratio of a country's nominal GNP to its real GNP, expressed as a percentage. It measures the percentage increase or decrease in the price of products and services by comparing the current GNP to a base period. By:- MAHMOOD KHAN LAHWOON, ZHOB
Definition of nominal gnp?
tae
Current gnp and real gnp?
19956.5
What is the difference between the current GNP and real GNP?
The actual one is the one that the government uses and the real gnp is the one that is well the real one just not the one the government goes by.
What is nominal price and real price?
Real price is in a mud nominal price is in your FACE
Liabilities is real accounts or nominal accounts?
nominal account.
When cyclical unemployment increases does the gap between real GNP and potential GNP increase or decrease or stay the same?
increases
What is the label for the Y-axis on this graph?
Other
Is depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is accumulated depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is inventory a nominal account?
real
Is suspense account a nominal account?
Not necessarily. It can be of any type. Real, Personal or Nominal.
