In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because
A)of changes in trade deficits and surpluses.
B)the length of the workweek has declined historically.
C)the price level may change over time.
D)depreciation may be greater or smaller than gross investment.

Question

Quizplus · Accepted Answer

Real GDP accounts for changes in the price level over time, while nominal GDP does not, leading to differences between the two when prices change.

In Comparing GDP Data Over a Period of Years, a Difference