Nominal 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 prices of all final goods and services produced by a country in a given year. This can be represented as current prices * current output. Option A is incorrect because it uses base year output, while option C uses base prices. Option D uses base year prices instead of current market prices. Option E is also incorrect and doesn't represent any valid formula for calculating Nominal GDP.

Nominal GDP Is Equal To