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# MGT411 Money & Banking GDB Solution & Discussion Fall 2011

Suppose there are only 100 goods being produced in a country during a particular year. In the next year the same numbers of goods are produced but the statistics show an increase in the GDP of the country in that year. Can GDP of a country increase without increasing the number of goods being produced in that country? If yes, then how? If, ‘No’ then why?

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### Replies to This Discussion

Just For Idea

Suppose there are only 100 goods being produced in a country during a particular year. In the next year the same numbers of goods are produced but the statistics show an increase in the GDP of the country in that year. Can GDP of a country increase without increasing the number of goods being produced in that country? If yes, then how? If, ‘No’ then why?

Nominal GDP can because it is not adjusted for inflation.It only shows the total value of goods produced in the country at current prices. Real GDP, which is adjusted for inflation cannot increase without the number of goods produced increasing.

Money & Banking

MGT411

GDB Idea Solution

Nominal GDP can because it is not adjusted for inflation. It only shows the total value of goods produced in the country at current prices. Real GDP, which is adjusted for inflation cannot increase without the number of goods, produced increasing.

i m suggesting as
Yes, because GDP is a value, so typically if prices inflate the GDP will increase even if the actual number of items is static.

This is the situation in most western countries over the past few decades - most of the work done is increasing services and decreasing actual goods, but the GDPs have continued to rise rapidly.
Unlike nominal GDP, real GDP can account for changes in the price level, and provide a more accurate figure.

Let's consider an example. Say in 2004, nominal GDP is \$200 billion. However, due to an increase in the level of prices from 2000 (the base year) to 2004, real GDP is actually \$170 billion. The lower real GDP reflects the price changes while nominal does not

PLz upload solution as soon as possible

Ans:-

Yes the GDP of a country increase without increasing the number of goods being produced in that country.

GDP stand for Gross Domestic Product. Its mean that the product that is produced in a country in a specific period of time. Mostly the time contain one year or more then one year. The GDP can be calculated in to the three ways

The product method

The expenditure Method

The Income Methed

kese aik ko b define kr k likh do

rao ali raza

assalamo alikum........ in 3 method ma se kisi aik ko define krna ha?

yar kis wale topic me se detail karna ha ye to batao plzzzz

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