The fact that nominal GDP has risen faster than real GDP
A) suggests that the base year of the GDP price index has been shifted.
B) tells us nothing about what has happened to the price level.
C) suggests that the general price level has fallen.
D) suggests that the general price level has risen.

Question

Quizplus · Accepted Answer

When nominal GDP rises faster than real GDP, it indicates that the prices of goods and services in the economy have increased, leading to a rise in the general price level. Real GDP is adjusted for inflation and reflects the actual growth in the volume of goods and services, while nominal GDP is not adjusted for inflation.

The Fact That Nominal GDP Has Risen Faster Than Real