Macroeconomics
If a country produced 300 units of a product at \$15 each in 2020 (base year) and 300 units at \$20 each in 2021, what is the real GDP for 2021 using 2020 prices?
How does the choice of base year affect the comparability of real GDP data over time?
Which of the following is true about GDP?
What is the primary purpose of using base year prices in real GDP calculations?
What is a limitation of using real GDP as a measure of economic performance?
Why might policymakers prefer real GDP over nominal GDP when assessing economic health?
Which GDP measure is more likely to reflect changes in production levels accurately?
If nominal GDP increases while real GDP remains constant, what might this indicate about the economy?
What is a potential issue with changing the base year frequently in real GDP calculations?
