GDP can be expressed in two different ways, nominal GDP and _____.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. real GDP.
- Nominal Gross Domestic Product (GDP) and Real GDP both quantify the total value of all goods produced in a country in a year.
- The real GDP (and real GDP per capita) shows a more accurate picture of a country’s economic performance.
- Real GDP is almost always slightly lower than its equivalent nominal figure.