What Is the Difference Between Nominal GDP and Real GDP

question 17

Multiple Choice

What is the difference between nominal GDP and real GDP?

• A) There is no difference. They are two terms for the same thing.
• B) Nominal GDP is always smaller than real GDP because it does not include price changes.
• C) Nominal GDP changes when output changes. Real GDP changes when output or prices change.
• D) Nominal GDP changes when prices or output change. Real GDP changes when output changes.

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