Under what conditions would real GDP increase more than nominal GDP?

A) Price inflation
B) Rapidly increasing interest rates
C) Price deflation
D) A major decline in the stock market

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of the economic value of goods and services produced over a specific period.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured using current prices without adjustment for inflation.

Price Inflation

The pace at which the overall price level of goods and services increases, leading to a decline in purchasing power.