If the nation's output of goods and services is increasing faster than the rate of inflation,then we can say that

A) real GDP is increasing faster than GDP.
B) GDP is increasing faster than real GDP.
C) GDP and real GDP are growing at about the same rate.
D) There is no way to determine if GDP or real GDP is growing faster.

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Tyree Clayton · Accepted Answer

Final Answer : B, Explanation :  GDP measures the total value of all goods and services produced over a specific time period within a country's borders. Real GDP adjusts GDP for inflation, providing a more accurate reflection of an economy's size and how it's growing over time. If the nation's output of goods and services is increasing faster than the rate of inflation, it means the nominal GDP (or simply GDP) is growing due to actual increases in production and not just from price increases. Therefore, GDP (which includes changes in price levels) is increasing faster than real GDP (which is adjusted for inflation).

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