The movie Action Packed, released last year, is the highest earning film in current GDP. The film Old Romance, released in the 1930s, is the highest earning film in real GDP. What caused this difference?

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Bizzy

9 February, 02:06

The movie Action Packed, released last year, is the highest earning film in current GDP. The film Old Romance, released in the 1930s, is the highest earning film in real GDP. What caused this difference?

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Elliott Stone · Answer 1

The difference occurs because prices were lower in the 30s.

Explanation:

To understand this fact, we need to know what current GDP (Gross domestic product) and real GDP are.

Current GDP is based on the present year prices, while real GDP has to be adjusted to changes in price across the years. Taking into account factors such as inflation, hence, the difference you see with these 2 movies.