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Nominal GDP and Real GDP
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Nominal GDP and Real GDP
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11. Gross Domestic Product (GDP) and Consumer Price Index (CPI) / Nominal GDP and Real GDP / Problem 6
Problem 6
What is the primary difference between nominal GDP and real GDP?
A
Nominal GDP uses current prices, while real GDP uses base year prices.
B
Nominal GDP is adjusted for inflation, while real GDP is not.
C
Nominal GDP measures production quantity, while real GDP measures production quality.
D
Nominal GDP includes government spending, while real GDP does not.
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