Why does inflation make nominal gdp a poor measure of the increase in total production from one year to the next?

Question

23-08-2022
Social Studies

contestada

Why does inflation make nominal gdp a poor measure of the increase in total production from one year to the next?

Respuesta :

Otras preguntas

Which statement does NOT describe properties of a proton?CHOICE A: Protons are attracted to negatively-charged electrons.CHOICE B: A proton has a mass of approx

what role did economic issues play in party realignment

A sailor drops a wrench from the top of a sailboat's vertical mast while the boat is moving rapidly and steadily straight forward. Where will the wrench hit the

What are some facts about arroz con leche (rice pudding) in Costa Rica?

what historical period is this art work from? Why type of art is it? Describe it’s three miss important features?

Suppose the reaction temperature X (in deg C) in a certainchemical process has uniform distribution with A= -5 and B=5. a. Compute P(X<0) b. Compute P(-2.5

3. No person may be elected a president for more than: a. one term c. two terms b. four terms d. three terms

Using microscope to look at a slide prepared with a stain you observe a cell with a clear inner compartment within the cell. This is cell is most likely a(n) __

A uniform 1.5-kg rod that is 0.80 m long is suspended at rest from the ceiling by two springs, one at each end of the rod. Both springs hang straight down from

Answer to the problem 5 + 5y

tripatsingh039 tripatsingh039 · Answer 1 · 2022-08-27T16:10:25+02:00

Inflation make nominal GDP a poor measure of the increase in total production from one year to the next because when nominal GDP increases from year to year, the increase is due partly to changes in prices and partly to changes in quantities.

A way to quantify economic activity that does not account for inflation is the nominal gross domestic product (GDP). The total output of all individuals and businesses located inside a nation's borders is measured by its GDP. Nominal GDP is typically mentioned in reports of a nation's GDP when the type is not specified.

Goods and services are included in nominal GDP. It solely counts finished production when gauging commodities. The BEA does not include the components produced to assemble the product. A truck, for instance, is counted once it is produced. Tires, axles, and seats are not included in the calculation.

Learn more about nominal GDP here

https://brainly.com/question/15171681

#SPJ4