Identify the correct statement about real and nominal gross domestic product (GDP)
A) In the base year, nominal GDP is equal to real GDP
B) In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth.
C) If real GDP decreases and the price index also decreases, nominal GDP must have increased
D) In periods of deflation, real GDP growth will tend to be lesser than nominal GDP growth.
E) If real GDP increases and the price index also increases, nominal GDP must have decreased.
Correct Answer:
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