If Statistics Canada uses a base year of 2007 for prices,real GDP will be ________ nominal GDP in 2007.
A) higher than
B) lower than
C) either higher or lower than
D) equal to

Question

Quizplus · Accepted Answer

Using a base year of 2007 for prices means that the nominal GDP for 2007 has already been adjusted for inflation. Therefore, real GDP, which is calculated by removing the effects of inflation from nominal GDP, will be equal to nominal GDP for that base year.

If Statistics Canada Uses a Base Year of 2007 for Prices,real