Why Do Economists Measure Growth in an Economy Using Real

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The Answer is Nominal GDP measures the final dollar value of all goods and services produced in an economy in a year.This measurement is made using current dollars.Growth in nominal GDP can occur for three reasons: (1) more goods and services are produced, (2) goods and services have higher prices, and (3) there is an increase in both goods and services produced and their associated prices.Real GDP is measured in constant dollars, so an increase in real GDP simply measures an increase in the production of goods and services.

Why Do Economists Measure Growth in an Economy Using Real

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Why Do Economists Measure Growth in an Economy Using Real

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