NUR SYAHMIMI BINTI ROSAIDI

2017291738

Bibliography
Sharp, A. (2016). CHAPTER 2 NATIONAL INCOME (GDP and GNP) MEASUREMENT. Retrieved
from SlidePlayer: https://slideplayer.com/slide/5689991/
3. Differences between real and nominal GNP
In economics, real and nominal are always used to refer to the differences
between its current price, or its nominal price. It is important to understand both
NOMINAL GNP DIFFERENCES REAL GNP
Estimating the GNP Definition Estimating the GNP at a
includes measuring the GNP fixed price also known as
at the prices of goods and constants price of a specific
services being measured at base year. (Sharp, 2016)
the prices existing in the
market in current year.
(Sharp, 2016)
Calculated based on current Based On Calculated based on base
price. price.
Nominal GNP does not How Inflation Affects It? Real GNP can adjust the
factor for inflation into inflation which is the
account so that the nominal fluctuation of costs and
GNP statistics analysts prices over time to
cannot accurately evaluate determine growth or attrition
them from one another. of the country’s GNP.

The value is higher since the The Value Of GNP The value is lower since the
changes of price are taken price of the base year has
into effect. taken into consideration.
The comparison between Comparison With Earlier The comparison between
various quarters can be done GNPs two(2) years consistently or
easily. not, it can be done easily.
It cannot be observed easily. Growth Of The Economy A beacon of real income
level in the economy.
A CD in Malaysia costs Example A year of private college
RM30. In Japan, science and costs in Malaysia about the
technology spending is value of a Toyota Vios.
about 3 trillion yen per year
to produce CDs.
nominal GNP and real GNP. Taking examples from real life and create your point of
view’s version of GNP is how you want to know how real GNP is calculated in real
life. This will help you understand the value of nominal and real GNP in Malaysia.

REFERENCE:

Bibliography
Sharp, A. (2016). CHAPTER 2 NATIONAL INCOME (GDP and GNP) MEASUREMENT. Retrieved
from SlidePlayer: https://slideplayer.com/slide/5689991/