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Nominal gdp measures base-year production using base-year prices. True or False

User Robar
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Answer: False

Explanation: Real GDP measures base year production using base year prices.

Nominal GDP measures base year production using current year prices.

A base year price in relation to the calculation of Real GDP is the value of a good or service produced in the current year using a previous year price.

A base year is a year chosen to minimise the effect of inflation when calculating GDP.

Current year price is the market price of the product during a given year.

User Nishantha
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