When Nominal GDP Is Less Than Real GDP It Means

question 97

Multiple Choice

When nominal GDP is less than real GDP it means

• A) prices have risen since the year we use as a standard for constant prices.
• B) the population has increased.
• C) prices have fallen since the base year.
• D) the population has decreased.
• E) there is a mistake because nominal GDP can never be less than real GDP.

---

Definitions:

National Security

Measures and strategies implemented by a government to protect its country's citizens, economy, and institutions from threats.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Offshoring

The relocation of a business process or operation from one country to another, typically to leverage lower labor costs.

Specialization

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services to gain greater efficiency and productivity.