# macroeconomics

should we care more about nominal GDP or real GDP??

Thank you for using the Jiskha Homework Help Forum. Here is a link that discusses that very question:

A GDP based on the prices that prevailed when the output was produced is called unadjusted GDP, or nominal GDP.
A GDP that has been deflated or inflated to reflect changes in the price level is called adjusted GDP, or real GDP.

http://en.wikipedia.org/wiki/Real_vs._nominal_in_economics

I suppose the answer to your question depends on the particular issue being addressed. However, if I had to pick one over the other, I personally would want real GDP rather than nominal GDP.

1. 👍 0
2. 👎 0
3. 👁 270
1. How do you find output and input?

1. 👍 0
2. 👎 0

## Similar Questions

1. ### Economics Macro

Suppose that real GDP per capita in the United States is \$49,000. If the long-term growth rate of real GDP per capita is 1.6% per year, how many years will it take for real GDP per capita to reach \$98,000?

asked by Danny on January 25, 2016
2. ### Macroeconomics

The money supply in Freedonia is \$200 billion. Nominal GDP is \$800 billion and real GDP is \$400 billion. Assuming that velocity is stable, if real GDP grows by 10 percent this year, and if the money supply does not change this

asked by Jess on April 9, 2013
3. ### economy

what does nominal gdp mean? im not sure if it is adjusted or not for inflation

asked by j cook on October 11, 2009
4. ### Economics

What components of GDP (if any) would each of the following transactions affect? Explain. (b) Aunt Jane buys a new house. (c) Ford sells a Mustang from its inventory. (g) Honda expands its factory in Marysville, Ohio. My Answers:

asked by Sally on April 4, 2007
1. ### Macroeconomics

Calculating the Rate of Growth of Per Capita Real GDP The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the countries' population was stable from year to year. Recently, however, a significant

asked by animal on May 12, 2008
2. ### Macroeconomics,

If nominal GDP is \$300 billion and the money supply is \$20 billion, What must be the velocity? (b)If the money supply decreases and the velocity does not change, what will happen to nominal GDP?

asked by mercedes on June 21, 2010
3. ### Economics

Concern about international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply? A. No change B. Aggregate supply will decrease, raising the price

asked by Codey on May 31, 2011
4. ### Economics

3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short

asked by Sarah on April 26, 2007
1. ### Macroeconomics

Given the following information, convert the figure for nominal GDP (nGDP) in 2014 to its real GDP (rGDP) value in 2006 dollars. GDP2014 = \$1.4 trillion CPI2014 = 110 GDP2006 = \$1.0 trillion CPI2006 = 100

asked by Caitlin on December 5, 2017

If real GDP per capita grows at a rate of 5% per year consistently over time, how many years would it take for it to double in size? 5 10 My answer 14 70 The purpose of indexing Social Security payments to the CPI is to ______.

asked by Ms. Douglas on November 18, 2009
3. ### Economics

If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year. a)What is the inflation rate? b)What is the growth

asked by Jayda on November 27, 2006
4. ### marcoenomics

Assume Country X has much larger real GDP than county Y. Despite its low real GDP figure, is it possible for the standard of living, as measured by GDP per capita, in Country Y to be better than the standard of living in Country