Nominal vs. Real GDP

… a core concept in Macroeconomic Policy

Click for MRU video

Click for MRU video

Concept description

This concept addresses the importance of distinguishing between nominal GDP, which can balloon via rising prices, and real GDP – a figure built on the production of either more goods and services, or more valuable kinds of them.

Alex Tabarrok (reference below and video to right) emphasizes the importance of learning to distinguish between inflation-driven GDP, and improvement-driven GDP.

MRU practice questions

See http://www.mruniversity.com/node/329125?utm_source=MacroAnnot&utm_medium=PQAnnot&utm_campaign=MRUYTAnnotation.

  1. Real GDP controls for

Source

Alex Tabarrok, Nominal vs Real GDP, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/real-versus-nominal-gdp, accessed 22 April 2016.

Atlas topic and subject

The Study of Macroeconomics (core topic) in Macroeconomic Policy.

Page created by: Ian Clark, last modified on 20 April 2016.

Image: Alex Tabarrok, Nominal vs Real GDP, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/real-versus-nominal-gdp, accessed 22 April 2016.