should we care more about nominal GDP or real GDP??
Thank you for using the Jiskha Homework Help Forum. Here is a link that discusses that very question:
http://economics.about.com/cs/macrohelp/a/nominal_vs_real.htm
A GDP based on the prices that prevailed when the output was produced is called unadjusted GDP, or nominal GDP.
A GDP that has been deflated or inflated to reflect changes in the price level is called adjusted GDP, or real GDP.
http://en.wikipedia.org/wiki/Real_vs._nominal_in_economics
I suppose the answer to your question depends on the particular issue being addressed. However, if I had to pick one over the other, I personally would want real GDP rather than nominal GDP.
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How do you find output and input?
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