Question

Real GDP takes into account the effect of any price increases (inflation) and adjust for it. Nominal GDP doesn't adjust for inflation (price increases). True or false

Answer 1

This statement on the difference between Real GDP and Nominal GDP is True.

How is nominal GDP different from Real GDP?

Nominal GDP refers to the final value of goods and services in a country and it is calculated using current prices in the market.

Real GDP on the other hand, takes Nominal GDP and adjusts its for inflation to see the effects of price changes on production.

Find out more on real GDP at https://brainly.com/question/13527379.

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