If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms.We refer to that adjustment as
A)inflating GDP.
B)deflating GDP.
C)compounding GDP.
D)indexing GDP.

Question

Quizplus · Accepted Answer

Deflating GDP is the process of adjusting nominal GDP values to account for inflation, allowing for a comparison of GDP across different years in constant-dollar terms.

If Prices Increased, We Need to Adjust Nominal GDP Values