Ask Question
BusinessBusiness
22 January, 04:58

GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. How is this possible?

+5
Answers (1)
  1. 22 January, 07:09
    0
    Inflation was higher in 1982

    Explanation:

    GDP is a measure of the sum value of goods and services produced in a country in a period. In calculating GDP, economists add up the total number of products and services produced and multiply them with their prices. The result is nominal GDP. The figures indicated for 1981 and 1982 are nominal GDP values.

    The actual value of output is measured by real GDP. Real GDP is nominal GDP that is adjusted for inflation. In 1982, the nominal GDP was higher, but the output was lower. The rise in GDP value in 1982 is a result of high prices used in the calculation. Inflation is the reason why GDP was reported as a higher figure in 1982 than in 1981, even though output was lower in 1982.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. How is this possible? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
According to surveys in the U. S. and the United Kingdom, what are the most frequently used financial performance measures by multinational organizations? A. Stock price, return on investment, profit B. Budgeted profit vs.
Answers (1)
The consumer wi-fi-service providers' market is best described as a
Answers (1)
What is the award recieved after completing a four year undergrad program called?
Answers (1)
In the long-run, a company will choose a manufacturing plant size that has the Multiple Choice minimum average total cost of producing the target level of output. maximum level of resource use per unit of the total product of output.
Answers (1)
A thief steals an ATM card and must randomly guess the correct three -digit pin code from a 9 -key keypad. Repetition of digits is allowed. What is the probability of a correct guess on the first try?
Answers (1)
New Questions in Business
Kirsten is trying to decide where to go for her well earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel.
Answers (1)
At the end of the year, Mercy Cosmetics' balance of Allowance for Uncollectible Accounts is $400 (credit) before adjustment. The balance of Accounts Receivable is $15,000.
Answers (1)
A mutual fund had NAV per share of $19.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.14. Income distributions were $0.57, and the fund had capital gain distributions of $1.12.
Answers (1)
What is meant by assessment? a. Activities that occur between two or more businesses. b. Provides services for connecting network resources across network domains. c. Documenting rules, procedures, and guidelines to be tested against a system. d.
Answers (2)
One financial institution is offering a 1% interest rate on savings accounts while another institution is offering a 2% interest rate on savings accounts. Out of the two financial institutions, which offer would the bank probably be offering
Answers (1)
Home » Business » GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. How is this possible?
Sign Up Forgot Password?