The difference between nominal GDP and real GDP is
A)that nominal GDP includes the depreciation of capital and real GDP does not.
B)that nominal GDP includes net exports of goods and services and real GDP includes net imports.
C)that real GDP includes the depreciation of capital and nominal GDP does not.
D)the indirect taxes used in their calculations.
E)the prices used in their calculations.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated using current prices, while real GDP is calculated using constant prices from a base year, adjusting for inflation.

The Difference Between Nominal GDP and Real GDP Is