What is real GDP and monetary GDP?which is the good indicator of welfa

1.	What is real GDP and monetary GDP?which is the good indicator of welfare of society?
Answer» HeyBrother Real GDP refer to GDP at constant price. REAL GDP = Q× P* Here, Q = quatity of final goods and services during ACCOUNTING year P* = Prices prevailing during base year Nominal GDP refer to GDP at currenr prices. Nominal GDP = Q×P Here, Q= quantity of final goods and services produced during an accoumting year P = prices prevailing during accounting year Real GDP is good indicator of welfare of society. Because nominal GDP can INCREASE even when there is no increase in production , it can increase with increase in prices whereas real GDP INCREASES only when there is increase in production of goods. MarkAsBrainliest ❤ThankYou❤

What is real GDP and monetary GDP?which is the good indicator of welfare of society?

Answer»

HeyBrother

Real GDP refer to GDP at constant price.

REAL GDP = Q× P*

Here,

Q = quatity of final goods and services during ACCOUNTING year

P* = Prices prevailing during base year

Nominal GDP refer to GDP at currenr prices.

Nominal GDP = Q×P

Here,

Q= quantity of final goods and services produced during an accoumting year

P = prices prevailing during accounting year

Real GDP is good indicator of welfare of society. Because nominal GDP can INCREASE even when there is no increase in production , it can increase with increase in prices whereas real GDP INCREASES only when there is increase in production of goods.

MarkAsBrainliest

❤ThankYou❤

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