Podcast
Questions and Answers
If the nominal GDP is stated in billions of dollars, how would one convert it to trillions?
If the nominal GDP is stated in billions of dollars, how would one convert it to trillions?
- Multiply the value by 1,000,000
- Multiply the value by 1000
- Divide the value by 1000 (correct)
- Divide the value by 1,000,000
Why is real GDP a more useful measure of economic growth than nominal GDP?
Why is real GDP a more useful measure of economic growth than nominal GDP?
- Real GDP is adjusted for changes in population.
- Nominal GDP is not reported frequently enough.
- Nominal GDP includes adjustments for inflation, while real GDP does not.
- Real GDP is adjusted for the effects of inflation, providing a clearer picture of actual output changes. (correct)
A graph of real GDP since 1948 would likely show which general trend?
A graph of real GDP since 1948 would likely show which general trend?
- A consistent decline with very few increases over the time period
- A general upward trend with periods of faster growth and occasional downturns. (correct)
- A stagnant growth pattern showing no changes or fluctuations over time
- A consistently high rate of growth, with no slowdowns or recessions.
What is a key characteristic of the US's economic growth since 1948, as measured by Real GDP?
What is a key characteristic of the US's economic growth since 1948, as measured by Real GDP?
If examining a graph of real GDP from 1948 onwards, how might major economic changes be identified?
If examining a graph of real GDP from 1948 onwards, how might major economic changes be identified?
Flashcards
Nominal GDP
Nominal GDP
The total market value of all goods and services produced in a country, measured in current prices.
Real GDP
Real GDP
The economic output adjusted for inflation; reflects the true value of goods and services at constant prices.
Economic Growth Trend since 1948
Economic Growth Trend since 1948
The overall pattern of Real GDP growth, showing fluctuations and general increases since 1948.
Inconsistencies in Economic Growth
Inconsistencies in Economic Growth
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Key Years of Economic Change
Key Years of Economic Change
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Study Notes
US Economy Size
- Nominal GDP is currently $23.8 trillion.
- Note the unit of measure is in billions of dollars but the answer needs to be in trillions.
- Note the information was not provided for quarters and years.
Real GDP Trend
- Real GDP, adjusted for inflation, shows a general upward trend since 1948. This indicates consistent economic growth in America.
- The growth has not been perfectly consistent and there have been periods of slower or faster growth.
- Specific years of significant change are not precisely identified in the provided information.
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