Nominal GDP in the United States was higher in 2012 than in 1950,but Real GDP was higher in 1950 than in 2012.

Question

Quizplus · Accepted Answer

Nominal GDP is the value of goods and services produced in a country in a given year, measured in current prices. Real GDP, on the other hand, is adjusted for inflation and reflects the actual increase in production from one year to another. Therefore, it is possible for nominal GDP to increase over time due to inflation, while real GDP may not show the same level of growth. In this case, it is likely that inflation has caused the nominal GDP in 2012 to be higher than in 1950, but when adjusted for inflation, the real GDP in 1950 was higher than in 2012.

Nominal GDP in the United States Was Higher in 2012