Nominal GDP will always be a higher reporting than Real GDP during periods of inflation. Why is this?

A. Real GDP focuses strictly on increases in production levels.

B. Nominal GDP focuses strictly on production levels.

C. Nominal GDP calculates the effects of inflation differently than Real GDP.

Question

Kai Wilkinson

28 October, 19:04

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Erin Burgess · Answer 1

C. Nominal GDP calculates the effects of inflation differently than Real GDP.

Nominal GDP will always be a higher reporting than Real GDP during periods of inflation. Why is this?A. Real GDP focuses strictly on increases in production levels.B. Nominal GDP focuses strictly on production levels.C. Nominal GDP calculates the effects of inflation differently than Real GDP.