If nominal GDP is rising faster than real GDP, then inflation must be occurring.

Name: If nominal GDP is rising faster than real GDP, then inflation must be occurring.
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Question

Quizplus · Accepted Answer

Nominal GDP measures the value of all finished goods and services at current prices, while real GDP is adjusted for inflation. If nominal GDP rises faster than real GDP, it indicates that prices are increasing, suggesting inflation.

If Nominal GDP Is Rising Faster Than Real GDP, Then