# Nominal vs Real GDP Formula Quiz

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## 18 Questions

### What is the difference between nominal GDP and real GDP?

Nominal GDP values goods at current market prices, while real GDP values goods at constant prices.

### In the Real-to-Nominal formula, what does the nominal value of an economic variable depend on?

The price level and the real value of the variable.

### If the price of apples increases from $0.50 to$0.55 per pound and the quantity produced of apples increases, what will happen to the real output of apples?

Real output will increase.

### In Year 2, if the price of xylophones increases from $10 to$12 and the quantity produced also increases, what impact will this have on the nominal GDP compared to the previous year?

Nominal GDP will increase.

### How is nominal output different from real output?

Nominal output considers only the quantity produced, while real output considers both quantity and market value.

### What economic concept is used to calculate the growth rate of a variable over time?

Percentage change

Nominal Value

Depreciation

National Income

Real Value

### Which value is calculated by taking Gross National Product (GNP) and subtracting the value of depreciation?

Net National Product

### If unwary analysts compared nominal GDP in different years without considering inflation, what might happen according to the text?

They would underestimate national output growth.

GDP Deflator

Divide by 100

### How is the nominal value of output calculated?

Price multiplied by Quantity of Output

0.85

Trough

### Which term refers to the relatively short-term movement of the economy from recession to expansion?

Test your knowledge on nominal and real GDP concepts with this quiz that covers the Real-to-Nominal formula, growth rate calculations, and the relationship between price level and economic variables.

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