What Is the Difference Between Real and Nominal GDP? If

question 138

Essay

What is the difference between real and nominal GDP? If the president of the United States (or your instructor) asked you to evaluate the economy over the past five years, which one would you use and why?

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Definitions:

Eighth Amendment

A provision of the U.S. Constitution prohibiting the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishment.

Cruel and Unusual Punishment

Punishment prohibited by the Eighth Amendment to the United States Constitution, including torture or other forms of punishment too severe for the crime committed.

Extortion

The criminal act of obtaining money, property, or services from an individual or institution through coercion.

Shoplifting

A criminal act of stealing goods from a retail establishment without paying for them.