The difference between nominal and real GDP is that nominal GDP is valued in _______ year prices and real GDP is valued in _______ year prices.
A) current; base
B) base; current
C) current; average current
D) average base; inflated current

Question

Quizplus · Accepted Answer

Nominal GDP is valued in current year prices, meaning the prices of goods and services in that year. Real GDP, on the other hand, is adjusted for inflation and valued in base year prices, which allows for a more accurate comparison of economic growth over time.

The Difference Between Nominal and Real GDP Is That Nominal