Assuming the price level increased, real gross domestic product (GDP) is greater than nominal GDP if the current period is _____the base period, and real GDP is less than nominal GDP if the current year is ______the base period.

Question

Quizplus · Accepted Answer

Real GDP is adjusted for inflation and is measured in base year prices. If the current period is before the base period, the price level is lower, making real GDP greater than nominal GDP. Conversely, if the current year is after the base period, the price level is higher, making real GDP less than nominal GDP.

Assuming the Price Level Increased, Real Gross Domestic Product (GDP)