Under what conditions will nominal GDP always equal real GDP?
A)if prices are declining
B)if the economy's total production does not change
C)if prices are increasing
D)in the base year

Question

Quizplus · Accepted Answer

Nominal GDP is calculated using current prices while real GDP is adjusted for inflation by using constant prices from a specific base year. Therefore, nominal GDP will always equal real GDP in the base year as there is no inflation to adjust for.

Under What Conditions Will Nominal GDP Always Equal Real GDP