U.S. nominal GDP:
A)has historically increased more slowly than real GDP.
B)has historically increased more rapidly than real GDP.
C)includes an estimate of the value of leisure time.
D)includes an estimate of underground productive activity.

Question

U.S. nominal GDP:
A)​has historically increased more slowly than real GDP.
B)​has historically increased more rapidly than real GDP.
C)​includes an estimate of the value of leisure time.
D)​includes an estimate of underground productive activity.

Quizplus · Accepted Answer

Nominal GDP is the value of goods and services produced by an economy measured at current market prices. Real GDP, on the other hand, is adjusted for inflation and measures the value of goods and services produced using constant prices. Nominal GDP has historically increased more rapidly than real GDP due to the effect of inflation on market prices.

U.S. Nominal GDP