AP Macroeconomics Mea 1 I Define Nominal Gdp and Real Gdp Questions

Distinguish nominal GDP from real GDP by comparing current and constant prices, interpreting output changes, and recognizing equality in the base year.

Exam points

distinguish nominal GDP at current prices from real GDP at constant or price-adjusted values
interpret an increase in real GDP as an increase in production rather than merely higher prices
explain why nominal GDP equals real GDP in the selected base year

[Maximum number: 1]

The table provided shows the quantities and unit prices of shirts, bread, and pants, the only three goods produced in the country of Middleland in 2021 and 2022. Assume that 2021 was the base year.

Table for Question AP Macroeconomics Mea 1 I Define Nominal Gdp and Real Gdp Questions question 1 — AP Macroeconomics

Was the real GDP in 2021 in Middleland greater than, less than, or equal to the nominal GDP in 2021? Explain.

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AP Macroeconomics Mea 1 I Define Nominal Gdp and Real Gdp Questions question 1