Nominal GDP is GDP measured in current prices and can be smaller than real GDP.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated using current market prices, meaning it does not take into account inflation. Real GDP, on the other hand, is adjusted for inflation and provides a more accurate measure of economic growth over time. As a result, nominal GDP can be smaller than real GDP if there has been inflation since the base year used to calculate real GDP.

Nominal GDP Is GDP Measured in Current Prices and Can