If real GDP in 2011 (using 2002 prices)is lower than nominal GDP of 2010,then

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Quizplus · Accepted Answer

Real GDP is adjusted for inflation using a base year, which in this case is 2002. If real GDP in 2011 (using 2002 prices) is lower than nominal GDP in 2010, it means that the increase in GDP between the two years is due to price changes rather than an increase in the quantity of goods and services produced. Therefore, prices in 2011 must be lower than prices in 2010.

If Real GDP in 2011 (Using 2002 Prices)is Lower Than