If Prices Are Rising on Average, Then

question 243

Multiple Choice

If prices are rising on average, then

• A)real GDP will always be equal to nominal GDP.
• B)real GDP will be greater than nominal GDP in the years after the base year.
• C)real GDP will be less than nominal GDP in the years before the base year.
• D)real GDP will be greater than nominal GDP in the years before the base year.
• E)real GDP will certainly be lower than nominal GDP.

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