Nominal GDP employs current prices to value output while real GDP employs constant base-year prices to value output.

Name: Nominal GDP employs current prices to value output while real GDP employs constant base-year prices to value output.
Brand: Quizplus
Rating: 4.8 (60 reviews)

Question

Quizplus · Accepted Answer

Nominal GDP values output using current prices, while real GDP uses a fixed set of base-year prices to adjust for inflation and provide a more accurate measure of economic output over time.

Nominal GDP Employs Current Prices to Value Output While Real