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Use following information of an imaginary country :Year2014-20152015-20162016-2017Nominal GDP6.58.49GDP deflator100140125(i) For which year is Real GDP and Nominal GDP same and why ? (ii) Calculate Real GDP for the given years. Is there any year for which Real GDP falls ? |
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Answer» (i) Real GDP and Nominal GDP is same for year 2014-2015. It is so because 2014- 20 15 is the base year. (ii)
The Real GDP declined in the year 2015-2016. It could be due to high rate of inflation or price levels. |
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