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Question : The value of GDP at the current prevailing prices is called _______.

Option 1: nominal GDP

Option 2: current GDP

Option 3: domestic GDP

Option 4: Real GDP


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: nominal GDP


Solution : The correct answer is Nominal GDP .

"Nominal GDP is the gross domestic product (GDP) at the most recent prices." It is determined by current market pricing, with no regard for the effects of inflation or deflation. It displays how much money was spent on the commodities, and services produced by a country within a fiscal year. In contrast to real GDP, which measures the rate at which prices rise in an economy, nominal GDP ignores price fluctuations caused by inflation.

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