Nominal gross domestic product (GDP)is equal to
A) (current prices)*(base year output).
B) (current prices)*(current output).
C) (base prices)* (base year output).
D) (base year prices)/(current output).
E) (current output)/ (base year prices).

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the current market price of goods and services with their current quantity. So, option B, which states (current prices)F1F1F1S1F1F1F10 (current output), is the correct answer. Option A is the formula for calculating nominal GDP using the base year output, Option C uses base year prices, Option D uses base year prices to find the current output, and Option E uses the base year prices to find the output in base year prices.

Nominal Gross Domestic Product (GDP)is Equal to