Suppose the nominal GDP for year A is $500,000 and the nominal GDP for the same economy in year B is $400,000. The real GDP for year A is $500,000, and the real GDP for year B is $500,000. The same amount of goods and services were produced each year. What happened to the prices of goods and services between year A and year B? Explain

Answers

Answer 1

Answer:

Explanation:

It should be understood that the nominal GDP is the total value of all goods and services produced in a given time period, usually quarterly or annually with inflation, while that of Real GDP is the inflation-corrected value of goods.

This means that the inflation during year B is higher than that of year A and that's why the nominal GDP of year B is a bit lower than that of year A.

Answer 2

The cause of the difference in the prices of goods and services between year A and year B using the nominal GDP is inflation, which was higher in year A than in year B.

The nominal GDP, which does not eliminate inflation, and the real GDP, which eliminates inflation, for year B would be the same figures with year A's, without inflation.  In both years, equal quantities of goods and services were produced.

Data:

Nominal GDP for year A = $500,000

Nominal GDP for year B = $400,000

Real GDP for year A = $500,000

Real GDP for year B = $500,000

Thus, removing the effect of inflation changes the nominal GDP into the real GDP.

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Related Questions

During the early Middle Ages, the Vikings invasion contributed to the end of which great European empire?

Answers

Answer:

The North Sea Empire

Explanation:

The Viking presence dwindled until 1066, when the invading Norsemen lost their final battle with the English at Stamford Bridge. The death in the battle of King Harald Hardrada of Norway ended any hope of reviving Cnut's North Sea Empire; it is because of this, rather than the Norman conquest, that 1066 is often taken as the end of the Viking Age. Nineteen days later, the Normans, themselves descended from Norsemen, invaded England and defeated the weakened English army at the Battle of Hastings.

Developing in Science and technology made possible new types of Warfare. What new weapons and Military strategies were introduced in WWI and WWII?​

Answers

Answer:

    "Innovations in machine guns, grenades, and artillery, along with essentially new weapons such as submarines, poison gas, warplanes and tanks in WWI. In WWII they made the the Bazooka, ATOMIC BOMB,  M101 Howitzer, Radio Proximity Fuze, the Sherman tank, Poison gas, semiauto and automatic rifles, accurate bolt-action rifles, and the flame thrower. These all were either new, or more developed when war broke out. Also new were airplanes, that introduced the art of dog fighting and bombing enemies."

Explanation:

(Found this online.)

Which Greek scientist contributed to the field of mathematics?

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Answer:

B.Elucid

Explanation:

Answer:

b

Explanation:

Which of the following statements best described the domino theory?
a. The United States feared that if one country in the Pacific fell to communism, than eventually they would all fall to communism. It was believed that if communism could be stopped it would protect the region.
c. After the Philippines gained independence and created a democratic government, many communist countries feared that they would soon loss their strong hold against other democratic nations.
b. The North Vietnamese government feared that if the United States got involved in their conflict, other major global powers would assist and they would loss control in South Vietnam.
d. After the conflict between Vietnam and the United States began, it was feared that the United States was going to have to supply an endless number of troops and supplies to fully defeat North Vietnam.

I NEED AN ANSWER FAST!!

Answers

Answer:

The United States feared that if one country in the Pacific fell to communism, than eventually they would all fall to communism. It was believed that if communism could be stopped it would protect the region.

The answer will be a. The United States feared that if one country in the Pacific fell to communism, then eventually they would all fall to communism. It was believed that if communism could be stopped it would protect the region

The main goal of the North was ____.
A. to abolish slavery
B. to defend its territory against the Confederacy
C. to restore the Union

Answers

Answer:

Restore the Union

Explanation:

The main goal of the North was to restore the Union, i.e. unite the country under one common government.


What is the purpose behind the system of checks and balances?

Answers

Answer:

To balance our government

Explanation:

someone help giving brainlist

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Answer:

the new boy did not say much

Explanation:

Please Help!! (Will give Branliest)

Which of the following is not a reason used by those opposing the Makah whale hunt?

A: Makah whaling at four-whale-per-year quota would seriously jeopardize the numbers of gray whales in migration.

B: Makah whaling will weaken the United States' anti-whaling position with countries such as Japan, who would like to increase their whaling efforts.

C: Makah whaling will negatively impact the sightseeing business, as whales will no longer approach whale watching boats.

D: Makah whaling is inhumane, as whales are highly intelligent creatures.

Answers

Answer:

C

Explanation:

This statement supports the Makah whale hunt rather than opposing, hope this helps !

Who is revered as one of the earliest "Americans"?

Answers

American Indians are commonly know as the first

When you are saving money you are:

Answers

Answer:

budgeting

Explanation:

saving money helps you budget what you can spend for bills and all necessities. you save for emergencies as well because you never know what life will bring

Please select the word from the list that best fits the definition, People who hold religious ideas that oppose church teaching?

Answers

Answer:

Heretics

Explanation:

her·e·tic

/ˈherəˌtik/

noun

plural noun: heretics

a person believing in or practicing religious heresy.

Heresy in Christianity denotes the formal denial or doubt of a core doctrine of the Christian faith as defined by one or more of the Christian churches. ... In the East, the term "heresy" is eclectic and can refer to anything at variance with Church tradition.

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How did the printing press spread humanism

Answers

Answer:

Humanism is related to the Renaissance in several ways. During the Renaissance the printing press helped spread information based in the liberal arts. People became more interested in Roman and Greek texts, which included science, geometry, philosophy, art, and poetry. The printing press allowed these subjects to reach more people quicker and easier.

Explanation:

If you were able to vote on the Equal Rights Amendment would you vote in favor or against it?

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Answer:favor

Explanation:

Which is the best example of a trustworthy source?
O a student blog
O an online forum
O historical fiction
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A scholarly journal.

Answer:

D

Explanation:

Hope I helped you all!!!

Napoleon’s first defeat in his attempt to take over Europe was

Answers

Answer:

should be the Battle of Trafalgar

Explanation:

Answer:

the Peninsula War

Explanation:

Napoleon's first defeat in his attempt to take over Europe was the Peninsula War.

What is the 1965 Immigration and Nationality act

Answers

Answer:

The Immigration and Naturalization Act of 1965, also known as the Hart-Celler Act, abolished an earlier quota system based on national origin and established a new immigration policy based on reuniting immigrant families and attracting skilled labor to the United States.

Explanation:

Answer:changed the national quota system to limit 170,000 immigrants per year from the Eastern Hemisphere and 120,000 from he Western Hemisphere

Explanation:

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Answers

Answer:

During world war 2, the Battle of Normandy which lasted from June 1944 to August 1944 resulted in the Allied liberation of Western Europe from Nazi Germany’s control. It was codenamed Operation Overlord. This battle began on June 6, 1944, or D-Day, when some 156,000 American, British and Canadian forces landed on five beaches. This was on a 50-mile stretch of the heavily fortified coast of France’s Normandy region.

If you would like any more information on this topic like how it resulted please let me know,

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What tyrant was removed from power by the Spartans

Answers

Answer:Greek

Explanation:I took the test

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O A. Increased wages for local workers
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Answers

Answer:

B

Explanation:greater capital mobility means Investment money flows freely around the world

Answer:

B. Increases foreign investment.

Explanation:

Just got it right

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Answers

OCTOBER 1867!!

Please mark brainliest!

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Answers

Answer:

C did it on e2020

Explanation:

Answer:

it is

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Explanation:

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D.William Shakespeare, Mark Twain, Agatha Christie
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Answers

Answer:

C.)

Explanation:

He best fits into this group because he was an African American author fighting for equality. He belongs with Hurston, who portrayed struggles of African Americans, and Langston Hughes, an African American poet who wrote about the struggles they faced.

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Answers

Answer:

North Korea handedly won the war and took all of South Korea.

Explanation:

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Answers

Answer:

june 21 1788

Explanation:

Answer:

March 4, 1789

Explanation:

when the first session of Congress began according to the standard legal account, the Constitution became efficative as law.

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Answers

Answer: Hitler's rule in Nazi Germany exemplified totalitarian rule by oppressing all German's rights, promoting himself at a much higher ranking, expressing his patriotism for Germany, while despising all other countries, and setting up a dictatorship, with himself at its center.

The heel of Italy's boot shape points to Sicily.
T/F
False

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The answer is true. The heel of Italy’s boot points to Sicily
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What were women’s roles during world war two

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Answer:

Women in the Second World War took on many different roles during the War, including as combatants and workers on the home front. The Second World War involved global conflict on an unprecedented scale; the absolute urgency of mobilizing the entire population made the expansion of the role of women inevitable

Explanation:

In a social contract, individual rights (such as life, liberty, and the pursuit of happiness) are limited by which of the selections below?
Select one:
A.
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B.
individual states, who are not beholden to the Federal Constitution.

C. the President
D.
the rights of others; exercising your rights cannot violate those of others.

Answers

Answer:

A.  the federal government; the Constitution heavily restricts individual rights.

Explanation:

The concept of the social contract and individual rights derives from the works of philosophers such as Locke, Rousseau, Hobbes, and Hume. According to the contract theory the authority of the state is derived from the consent of the governed to be ruled by the state. And therefore individuals as per the contract agree to surrender to the government certain freedoms and rights which in return guarantee rights such as liberty, equality, and the pursuit of happiness.

Answer:

The correct answer is:

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Explanation:

While most actions are permissible under a social contract, you cannot violate the rights of others. The primary justification for restrictions on freedom in a social contract should be to protect the rights of others.

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Answer:

yes B is the correct answer

Explanation:

Answer:

yes

Explanation:

that is correct,you made the right choice.B is the answer.

2. What postwar issues did most European nations face
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Answers

Answer:

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Explanation:

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