Between 2013 and 2015,the nominal GDP of Venezuela grew by 29% annually because prices in Venezuela decreased rapidly during the period.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods and services produced by their current market prices. Therefore, if prices decrease rapidly, the nominal GDP will reflect a smaller value even if the quantity produced has remained constant or even increased. In the case of Venezuela, between 2013 and 2015, the country experienced high levels of inflation, which means that prices increased rapidly instead of decreasing. As a result, the nominal GDP of Venezuela did not grow by 29% annually during that period.

Between 2013 and 2015,the Nominal GDP of Venezuela Grew by 29