Imagine that you were reading an international marketing text in which you learned that the GDP for one of the former members of the Soviet Union was $1.56 billion. A few pages later in the same text, the book states that that nation's real GDP was $800,000. From reading this information, what could you conclude?
A) The second GDP measurement reflected only the value of the products produced in the nation and did not include the value of services.
B) The various methods used to calculate GDP do not produce the same results.
C) GDP is an approximation of the actual total value.
D) This former member of the Soviet Union had a high rate of inflation.

Question

Quizplus · Accepted Answer

The difference between nominal GDP ($1.56 billion) and real GDP ($800,000) suggests a high rate of inflation, as real GDP accounts for inflation and reflects the value in constant dollars.

Imagine That You Were Reading an International Marketing Text in Which