Why has nominal GDP increased historically more rapidly than real GDP in the United States?

Question

Quizplus · Accepted Answer

Nominal GDP is measured in current prices, whereas real GDP is adjusted for inflation. Inflation causes the prices of goods and services to increase over time, leading to an increase in nominal GDP even if the quantity of goods and services produced remains the same. Therefore, inflation is the primary reason why nominal GDP has historically increased more rapidly than real GDP in the United States.

Why Has Nominal GDP Increased Historically More Rapidly Than Real