Nominal vs. Real GDP Video

What does GDP stand for?

• Government Debt Payment

• Gross Domestic Product

• Global Demand Percentage

• General Development Process

Which of the following best describes Nominal GDP?

• GDP adjusted for inflation

• GDP measured using current market prices

• GDP measured in terms of physical units

• GDP divided by the country's population

What does Real GDP measure?

• The potential GDP of a country

• The GDP per capita

• The total value of goods and services produced, adjusted for inflation

• The total value of all goods and services at current prices

How is Real GDP different from Nominal GDP?

• Real GDP measures economic output without adjustments

• Nominal GDP measures the standard of living

• Real GDP controls for inflation

• Nominal GDP is always higher than Real GDP

What does Real GDP per capita measure?

• The total economic output of a country

• The average income of a country's citizens

• Government spending per person

• The standard of living in a country

Why do economists prefer using Real GDP over Nominal GDP?

• Because it shows the economy's performance without price changes

• Because it is easier to calculate

• Because it always shows higher values

• Because it includes government spending

What does a decline in Real GDP per capita indicate?

• A decrease in inflation

• An increase in population

• A recession

• An increase in the standard of living

How can Real GDP increase?

• By producing more valuable goods and services

• Through an increase in inflation

• By increasing the population

• By decreasing government spending

What was the Real GDP per capita in 1950 compared to 2015?

• It was about the same

• It was four times higher in 2015

• It decreased by half in 2015

• It was twice as high in 1950

What does the FRED database provide?

• Information on global warming

• Economic data for analysis

• Historical political data

• Social media trends