Nominal GDP Is Not an Accurate Measure of the Real

Nominal GDP is not an accurate measure of the real level of economic activity in a country because:

A) inflation distorts the real value of all the goods and services produced.
B) taxes distort the real value of all the goods and services produced.
C) base year prices are likely to experience substitution bias.
D) the GDP deflator constantly underestimates the real cost of living.