Question

GDP Inflation is adjusted in Nominal GDP. (True/False)​

Answer 1

Answer:

Nominal GDP vs.

Nominal GDP is a macroeconomic assessment of the value of goods and services using current prices in its measure. ... The main difference between nominal GDP and real GDP is the adjustment for inflation. Since nominal GDP is calculated using current prices, it does not require any adjustments for inflation.

Answer 2

Answer:

Since GDP is based on the monetary value of goods and services, it is subject to inflation. ... Nominal GDP is usually higher than real GDP because inflation is typically a positive number. Real GDP accounts for changes in market value and thus narrows the difference between output figures from year to year.