Nominal GDP of a Particular Year Is Calculated as the Total

question 32

True/False

Nominal GDP of a particular year is calculated as the total value of final goods and services in that year in terms of the base-year prices.

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Definitions:

Savers

Individuals or entities that set aside funds rather than spending them, typically to accumulate wealth for future use.

Creditors

Creditors are individuals or institutions to whom money is owed by another individual or entity, typically resulting from a loan or credit extended.

Debtors

Individuals or entities that owe money to another party, typically as a result of borrowing funds.

Nominal Rate

The interest rate as stated without adjusting for inflation, representing the actual percentage that borrowers pay and lenders receive.