If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.
A)is greater than
B)is less than
C)is equal to
D)could be greater than or less than

Question

Quizplus · Accepted Answer

When the price level has risen, the current prices used when computing today's nominal GDP are higher than the prices in the base year, which used for computing real GDP.

If Prices in the Current Year Are Higher on Average