If the GDP price index number for a particular year has a value of less than 100.00, then in that year real GDP will:
A) equal money GDP.
B) exceed money GDP.
C) be less than money GDP.
D) be greater than $100 trillion.

Question

Quizplus · Accepted Answer

If the GDP price index is less than 100, it indicates that the price level is lower than the base year. Therefore, real GDP, which is adjusted for inflation, will exceed nominal (money) GDP.

If the GDP Price Index Number for a Particular Year