Normally in the United States the relationship between nominal and real GDP for a given year is

Question

Quizplus · Accepted Answer

Nominal GDP measures the value of goods and services produced in a given year at current market prices, while real GDP measures the value of goods and services produced in a given year using constant market prices from a base year. Therefore, nominal GDP reflects both changes in the quantity of goods and services produced as well as changes in their prices. In general, prices tend to increase over time due to inflation, so nominal GDP is typically higher than real GDP.

Normally in the United States the Relationship Between Nominal and Real