Analysis Of Macroeconomic Variables And Policy Implications

Answer:
Nominal GDP of nation represents the monetary values of all goods and services produced in a year where goods are valued in terms of current market price. Real GDP on the other hand in price adjusted measure of total output in a nation. A fixed base year is used to compute real GDP of the nation. An increase in nominal GDP tend to increases the value of real GDP given the price level is fairly stable (Goodwin et al. 2015). For Austr…