Nominal GDP has generally risen more rapidly than real GDP since World War II in the United States, suggesting that
A)the general price level has declined.
B)the general price level has increased.
C)productivity has increased substantially.
D)world trade has increased.

Question

Quizplus · Accepted Answer

Nominal GDP includes changes in prices and quantities, while real GDP is adjusted for inflation. The fact that nominal GDP has risen more rapidly than real GDP suggests that the general price level has increased due to inflation.

Nominal GDP Has Generally Risen More Rapidly Than Real GDP