-Money GDP is less than real GDP in:
A) year 1.
B) year 2.
C) year 1 and year 2.
D) year 3 and year 4.

Name: -Money GDP is less than real GDP in: A) year 1. B) year 2. C) year 1 and year 2. D) year 3 and year 4.
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Question

-Money GDP is less than real GDP in:
A) year 1. 
B) year 2. 
C) year 1 and year 2. 
D) year 3 and year 4.

Quizplus · Accepted Answer

Money GDP is less than real GDP when the price level is below the base year level, indicating deflation. This typically occurs in the early years of a series when prices are lower than the base year.

-Money GDP Is Less Than Real GDP In