If Prices Have Increased Since the Base Period,then

question 120

Multiple Choice

If prices have increased since the base period,then

• A)real GDP is smaller than nominal GDP.
• B)real GDP is larger than nominal GDP.
• C)real GDP is equal to nominal GDP.
• D)there is no way to adjust nominal GDP so that it equals real GDP.
• E)real GDP can no longer be compared to nominal GDP.

---

Definitions:

Goods in Process Inventory

Items that are currently in the production process and have not yet reached the finished goods status in a manufacturing company.