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Business, 19.02.2020 02:15 moomoofower
Real GDP is a better measure of economic well-being than nominal GDP, because real GDP: adjusts the value of goods and services produced for changes in the foreign exchange rate. excludes the value of goods and services exported aboard. includes the value of government transfer payments. measures changes in the quantity of goods and services produced by holding prices constant. Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 4 in 2009, then real GDP (in 2002 prices) in 2009 was: $6.50. $11. $5. $9.50
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Real GDP is a better measure of economic well-being than nominal GDP, because real GDP: adjusts the...
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