The difference between real and nominal GDP is...

CA Foundation · Business Economics · MTP · June 2024
The difference between real and nominal GDP is...
(A) A. Nominal GDP only accounts for citizens.
(B) B. Nominal GDP uses price-levels of some base year.
(C) C. Nominal GDP uses actual price-levels.
(D) D. Real GDP also includes services, whereas nominal GDP only takes goods into account.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Nominal GDP uses price-levels of some base year.

Topics: Determination of National Income

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