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.
A) before; before
B) before; after
C) after; after
D) after; before
E) equal to; the same as

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, real GDP will be greater than nominal GDP because prices were lower in the base period. Conversely, if the current year is after the base period, real GDP will be less than nominal GDP due to higher prices in the current year.

Assuming the Price Level Increased,real Gross Domestic Product (GDP)is Greater