Grade 12 · Social studies
Distinguish nominal changes from price-adjusted changes
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Nominal output is 300 and the base-100 price index is 150. What is real output?
- 100 base-year units
- 150 base-year units
- 120 base-year units
- 200 base-year units
See the answer & why
200 base-year units
300 ÷ 1.50 = 200 base-year units.
A little hint: Nominal values use current prices; real values adjust for the price level using a stated base.
Nominal values use current prices; real values adjust for the price level using a stated base.
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