The difference between nominal GDP and real GDP is:
A) real output growth.
B) inflation.
C) nominal output growth.
D) long-run trend GDP.
E) average output growth.

Question

Quizplus · Accepted Answer

Nominal GDP represents the total value of goods and services produced in a given year at current prices, while real GDP represents the total value of goods and services produced in a given year at constant prices, adjusted for inflation. Therefore, the difference between nominal GDP and real GDP is inflation.

The Difference Between Nominal GDP and Real GDP Is