Historically, real GDP has increased less rapidly than nominal GDP because
A)price indices have not reflected improvements in product quality.
B)the general price level has increased.
C)technological progress has resulted in more efficient production.
D)the general price level has decreased.

Question

Quizplus · Accepted Answer

Nominal GDP is measured using current prices, so it increases with inflation. Real GDP is adjusted for inflation, reflecting true growth in output.

Historically, Real GDP Has Increased Less Rapidly Than Nominal GDP