If the GDP chain price index in a given year is less than 100, real GDP in that year would be greater than nominal GDP.

Question

Quizplus · Accepted Answer

If the GDP chain price index is less than 100, it indicates that prices have decreased compared to the base year. This means that nominal GDP would be higher than real GDP, as nominal GDP is calculated using current prices whereas real GDP is adjusted for inflation using base year prices.

If the GDP Chain Price Index in a Given Year