On the quick sheet is says nominal= real+ inflation In a problem its solved by 1+nominal=(1+real)(1+inflation) When does one use each?
The first is an approximation of the second.
So when does one use each?
I’d use the true formula always.
On the quick sheet is says nominal= real+ inflation In a problem its solved by 1+nominal=(1+real)(1+inflation) When does one use each?
The first is an approximation of the second.
So when does one use each?
I’d use the true formula always.