Nominal GDP will grow faster than real GDP only when there is inflation.

Name: Nominal GDP will grow faster than real GDP only when there is inflation.
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Question

Quizplus · Accepted Answer

Nominal GDP measures the value of goods and services produced in current market prices, while real GDP adjusts for inflation and measures the value of goods and services in constant prices. Therefore, if there is inflation, nominal GDP will increase faster than real GDP.

Nominal GDP Will Grow Faster Than Real GDP Only When