is the difference between real and nominal GDP? Does GDP accurately
reflect the nation’s welfare? Why or why not? How can a country’s GDP be
manipulated? In your opinion, is the U.S. GDP being manipulated?
Explain your answer.
Thank you for the opportunity to help you with your question!
The major diffrence between real and nominal GDP is that in the real GDP, the inflation factor is included, whereas in nominal, it's not. The rally GDP can easily be manipulated to show positive side of the economic, when the real thing is not. The American government may use other crude means of improving GDP like calculating the figures when the dollar exchange rate was favorable. When inflation is factored, you realise that the grow was minimal.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 7th, 2015
Did you know? You can earn $20 for every friend you invite to Studypool!