Respuesta :
Answer:
Year 3 is likely to having been used as base year.
Explanation:
Nominal GDP is the value of goods & services (valued at current prices), produced by an economy during a given period of time.
Real GDP is the value of goods & services (valued at current prices), produced by an economy during a given period of time.
Nominal GDP can change due to both - change in price, change in production quantity. However , Real GDP changes only due to change in production quantity.
Nominal GDP > Real GDP , when current year price level > base year price level. Nominal GDP < Real GDP , when current year price level < base year price level. Nominal GDP = Real GDP, when current year price level = base year price level or current year is the base year.
So, Year 3 is likely to having been used as base year.
Year 3 is likely to having been used as base year.
The following information should be considered:
- Nominal GDP is the value of goods & services i.e. valued at current prices generated by an economy.
- Real GDP is the value of goods & services i.e. valued at current price produced by an economy.
- Nominal GDP can change due to both - change in price, change in production quantity.
- However, Real GDP changes only due to change in production quantity.
Nominal GDP > Real GDP this arise when current year price level > base year price level.
Nominal GDP < Real GDP this arise when current year price level < base year price level.
Nominal GDP = Real GDP, when current year price level = base year price level or current year is the base year.
Therefore we can conclude that Year 3 is likely to having been used as base year.
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