Describe the Difference Between Real GDP and Nominal GDP

question 38

Essay

Describe the difference between real GDP and nominal GDP.

---

Definitions:

Imperfect Competition

Market structures that do not meet the conditions of perfect competition, including monopolistic competition, oligopoly, and monopoly.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Resource

Assets, materials, or inputs used to produce goods and services, including natural resources, labor, and capital.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to input in the production process.