What is the distinction between nominal GDP and real GDP? What ...

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What is the distinction between nominal GDP and real GDP?
 
  What will be an ideal response?

Question 2

Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 3,000 cell phones?
 
  A) marginal revenue B) gross profit C) sales revenue D) gross earnings

[sabina576]

Answer to Question 1

Nominal GDP is the value of final goods and services produced in a given year valued at the prices of that year. Real GDP is the value of final goods and services produced in a given year when valued at the prices of a reference base year. By comparing the value of production in the two years at the same prices, we reveal the change in production.

Answer to Question 2

A

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TYSM

[momolu]

Excellent