Gdp is adjusted for inflation bias computed in different years using a common

set of fixed base-period prices.

true

false

The correct answer is True.

Explanation:

GDP is computed in two ways: Nominal GDP and Real GDP.

Nominal GDP is GDP measured in current prices (for example, the GDP for 2019 is measured in 2019 prices), while Real GDP is measured in constant prices, (a year is selected, for example 2015, and the 2019 GDP is measured in 2015 prices).

In order to find Real GDP, you need to account for inflation, which is the rate of change in prices from year to year. This is done by using the GDP Deflator, which measures the change in prices in all goods and services.

The formulas are:

GDP Deflator = Nominal GDP/Real GDP

And rearraging the terms of the equation:

Real GDP = Nominal GDP / GDP Deflator

industry had made the u.s. the richest nation in the world at this time. the second industrial revolution caused growth in industry and transportation, which allowed increased trade between nations.