Real GDP vs. Nominal GDP

Real GDP is GDP adjusted for changes in the price level and Nominal GDP is GDP expressed at current prices and it is often called money GDP (Gwarthney, pg. 732 & 734). Both the Real GDP and Nominal GDP are from the GDP deflator which is measurements of money and power that are the effects of inflation. The Real GDP is the measurements of significant of price changes and Nominal GDP is the measurements of inflation. We need both Real GDP and Nominal GDP because both plays important roles in the economics system and both are use to keep up with the comparison of years, prices, price index, and real GDP with percentage increases between of the area noted.

In my first article, Wall Street Journal, it took place in Japan around the 2000 about the fourth quarter concern because instead of the prices rising they are progressively declining among other nations are excelling. I paid attention in the first 2 quarters real and nominal were the same but on the last two it change the nominal gdp became poorer then the real gdp. In which is bad because the products of goods and services determined the inflation and real growth in which is the numbers economics look for to increase because it’s the profit that counts. I suggest that Japan needed to reevaluate a plan to increase their products and sells so the inflation and real gdp and the nominal which is the money would increase in the world trade sells.

My 2nd article of reality of today of 2014, about the Tax Freedom Day was on April 21st.It took place three days later then it would usually be on April 19th .This day was produce design for every nation should have produce sufficient money to pay their own “total tax bill” for the year. It separates the federal, local, and state taxes by the nation income. As of 2014, USA paid a grand total of $4.5 trillion dollars in taxes which were