The difference between nominal GDP and real GDP is:
A) real output growth.
B) the price level.
C) nominal output growth.
D) long-run trend GDP.
E) average output growth.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated based on the current market prices, while real GDP is adjusted for changes in the price level to provide a more accurate measure of economic growth. Therefore, the difference between nominal and real GDP is the price level.

The Difference Between Nominal GDP and Real GDP Is