Inflation adjustment is the difference between:
A) nominal GDP and real GDP.
B) nominal GDP and nominal GNP.
C) nominal incomes and nominal expenditure.
D) nominal output and nominal incomes.

Question

Quizplus · Accepted Answer

Inflation adjustment accounts for the changes in price levels over time, distinguishing between nominal and real values. Real GDP is adjusted for inflation, while nominal GDP is not, making the difference between them the inflation adjustment.

Inflation Adjustment Is the Difference Between