Favorite Answer. Anonymous. 0 … 3. Employment should increase with production,not only an increase in price. Which of the following would cause prices to rise and real GDP to fall in the short run? Which is a better indicator of growth in job opportunities: an increase in nominal GDP or real GDP? The GDP formula of factors like investment, consumption, public expenditure by government and net exports In this lesson summary review and remind yourself of the key terms and calculations used in calculating real and nominal GDP. 9 years ago. Dived the answer (the change in real GDP from the previous year) by real GDP in GDP declines from Year 1 to Year 2, the answer will be a … 2 Answers. b) is a measure of the value of output produced and available to an average person. 1. Refer to Figure 14-1 Relevance. Economic growth is measured as an increase in real GDP. In a theoretical world, a 2% wage increase during a year with 4% inflation has the same net effect to the worker as a 2% wage reduction in periods of zero inflation. Growth Rate of Real GDP = [($9.216 trillion – $3.85 trillion)/ $3.85 trillion]*100; Growth Rate of Real GDP = 140% Explanation. The reason why real GDP is a superior method of expressing national economic performance can be easily illustrated. Take for … To compute real output growth in GDP from one year to another, subtract real GDP for Year 2 from real GDP from Year 1. Per capita real GDP a) is equivalent to the real GDP level. It is obvious that it is real GDP. Real GDP Comparisons . Real GDP–also referred to as "constant-price," "inflation-corrected" or "constant-dollar GDP–is an inflation-adjusted measure of a country's GDP. a. an increase in the expected price level b. an increase in the capital stock c. an increase in the quantity of labour available d. an increase in money supply Consider the exhibit below for the following questions. True/False 2. Topics include the distinction between real and nominal GDP and how to calculate and use the GDP deflator. d) is a measure of an economy's income distribution.   It provides a more realistic assessment of growth than nominal GDP. real GDP . Q. During that period the highest annual growth of … The total dollar value of all final goods and services produced within the country’s border in a given year after inflation is taken out of the data. The real GDP growth rate shows the percentage change in a country’s real GDP over time, typically from one year to the next. e) is a measure of the GDP per country. 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