According to the BEA, in the second quarter of 2012 nominal GDP rose by 3.3 percent and real GDP rose by 1.7 percent. The difference between the change in nominal GDP and the change in real GDP could be explained by

Question

Quizplus · Accepted Answer

The difference between nominal GDP growth (3.3%) and real GDP growth (1.7%) indicates that prices of final goods and services increased, as nominal GDP includes changes in both price and quantity, while real GDP is adjusted for inflation and reflects only changes in quantity.

According to the BEA, in the Second Quarter of 2012