What is the difference between real GDP and nominal GDP?
4. What is the difference between real GDP and nominal GDP? Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars. Real GDP includes nonmarket activities; nominal GDP has no nonmarket activities. Real GDP is based on constant prices; nominal GDP is based on the current year’s prices. Real GDP allows for depreciation; nominal GDP allows for no depreciation. 3. Which of the following is a nondurable good? washing machine air conditioner bicycle gasoline 4. Real GDP is based on constant prices; nominal GDP is based on the current year’s prices. Nominal GDP measures aggregate output as measured in current prices. Real GDP is the nominal GDP adjusted for price changes, so that a comparison can be made over time of the changes in real output. 3. gasoline Gasoline is used once, then gone. The other items are intended to last a relatively long period of time.
