If GDP rose from $4 trillion in the base year to $6 trillion in the current year,and there was some inflation during this period,the most accurate statement that can be made about the change in real GDP between the base year and the current year is that

Question

Quizplus · Accepted Answer

Given that there was inflation, the nominal GDP increase from $4 trillion to $6 trillion overstates the increase in real GDP. Real GDP adjusts for inflation, so while it may have increased, the increase would be less than the 50% suggested by the nominal figures.

If GDP Rose from $4 Trillion in the Base Year