Wednesday, October 26, 2016

Ch. 7 Reading Guide Part 2 (Due Thurs)

Carefully read p. 123-125


1.  In your own words, explain the difference between real and nominal GDP.


2.  In what circumstances would an economist prefer real GDP data to nominal GDP data? 


3.  What is a price index?


4.  What is the formula for calculating read GDP when you are provided with a price index?

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