In the base year,the relationship between nominal and real GDP is
A)uncertain.
B)one of equality.
C)real GDP is higher.
D)nominal GDP is higher.

Name: In the base year,the relationship between nominal and real GDP is A)uncertain. B)one of equality. C)real GDP is higher. D)nominal GDP is higher.
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Question

Quizplus · Accepted Answer

In the base year, the GDP deflator (price index) is 100, and real GDP is calculated by dividing nominal GDP by the deflator. Therefore, real GDP and nominal GDP will be equal in the base year.

In the Base Year,the Relationship Between Nominal and Real GDP