Nominal GDP will always equal real GDP:
A)if prices are declining.
B)in the base year.
C)if prices are increasing.
D)if the economy's total production does not change.

Question

Nominal GDP will always equal real GDP:
A)​if prices are declining.
B)​in the base year.
C)​if prices are increasing.
D)​if the economy's total production does not change.

Quizplus · Accepted Answer

Nominal GDP is the value of goods and services produced in a given year using current prices, while real GDP is the value of goods and services produced in a given year using constant prices. Nominal GDP will only equal real GDP in the base year, when prices used to calculate both measures are the same.

Nominal GDP Will Always Equal Real GDP