OK I've done this question but I just have to clarify this (I'm asking in general):
Year 1 is the base year...
The nominal GDP in year 2 is greater than in year 1
The real GDP in year 2 is less then the nominal GDP in year 1 & year 2.
So my question is: Is the economy earning more or less in the second year (than in the first)? Explain.
Year 1 is the base year...
The nominal GDP in year 2 is greater than in year 1
The real GDP in year 2 is less then the nominal GDP in year 1 & year 2.
So my question is: Is the economy earning more or less in the second year (than in the first)? Explain.