Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.

-Assuming the price level increased,real GDP is greater than nominal GDP if the current year is ________ the base year,and real GDP is less than nominal GDP if the current year is ________ the base year.
A) before; before
B) before; after
C) after; after
D) after; before
E) equal to; equal to

Question

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.
 
-Assuming the price level increased,real GDP is greater than nominal GDP if the current year is ________ the base year,and real GDP is less than nominal GDP if the current year is ________ the base year.
A) before; before 
B) before; after 
C) after; after 
D) after; before 
E) equal to; equal to

Quizplus · Accepted Answer

Real GDP is adjusted for inflation and is measured in base year prices. If the current year is before the base year, the price level in the current year is lower than in the base year, making real GDP greater than nominal GDP. Conversely, if the current year is after the base year, the price level is higher, making real GDP less than nominal GDP.

Consider the Following Data That Gives the Quantity Produced and Unit