wat is the difference between GDP at current prices (moneyGDP) and GDP at constant prices (real GDP)??
pls helpp meee
2007-01-14 15:01:24 · 3 answers · asked by Anonymous in Education & Reference ➔ Homework Help
GDP at current prices simply indicates total goods and services for a period of time but doesn't give any comparison with how good it is as compared to previous years
Measuring at constant prices, takes the inflation component out of it and allows you to compare it with the base year or other years. It simply creates a reference point.
2007-01-14 15:18:25 · answer #1 · answered by huskie 4 · 0⤊ 0⤋
The difference is simply the inflation. When you measure the GDP a current prices, you take in consideration the rate of inflation. However, when you only consider the constant prices, you eliminate the inflation factor.
Good luck
2007-01-14 23:21:11 · answer #2 · answered by Twin Peak 3 · 0⤊ 0⤋
http://en.wikipedia.org/wiki/Gross_domestic_product
2007-01-15 06:34:08 · answer #3 · answered by elvisjohn 7 · 0⤊ 0⤋