Table 10-3
The table below reports nominal and real GDP for the U.S. from 1929 to 1932. $$\begin{array} { c c c }
\hline \text { Year } & \begin{array} { c }
\text { Nominal } \
\text { GDP }
\end{array} & \text { Real GDP } \
\hline 1929 & 103.6 & 977 \
1930 & 91.2 & 892.8 \
1931 & 76.5 & 834.9 \
1932 & 58.7 & 725.8 \
\hline
\end{array}$$
-Refer to Table 10-3. If prices had remained constant between 1929 and 1930, GDP would have decreased

Question

Table 10-3
The table below reports nominal and real GDP for the U.S. from 1929 to 1932. $$\begin{array} { c c c } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal } \
\text { GDP }
\end{array} & \text { Real GDP } \
\hline 1929 & 103.6 & 977 \
1930 & 91.2 & 892.8 \
1931 & 76.5 & 834.9 \
1932 & 58.7 & 725.8 \
\hline
\end{array}$$
-Refer to Table 10-3. If prices had remained constant between 1929 and 1930, GDP would have decreased

Quizplus · Accepted Answer

If prices had remained constant, real GDP would have been the same in 1930 as it was in 1929. However, nominal GDP decreased from 103.6 in 1929 to 91.2 in 1930. This represents a decrease of (103.6 - 91.2) / 103.6 * 100 = 8.62%.

Table 10-3 the Table Below Reports Nominal and Real GDP

Table 10-3
the Table Below Reports Nominal and Real GDP