The difference between nominal GDP and real GDP is
A)the indirect taxes used in their calculations.
B)the prices used in their calculations.
C)that nominal GDP includes the depreciation of capital and real GDP does not.
D)that nominal GDP includes net exports of goods and services and real GDP includes net imports.
E)that real GDP includes the depreciation of capital and nominal GDP does not.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated using current market prices, while real GDP is adjusted for inflation using a base year price index. Therefore, the difference between nominal GDP and real GDP is the prices used in their calculations.

The Difference Between Nominal GDP and Real GDP Is