Question

What is the difference between Nominal GDP and Real GDP?

Nominal GDP is measured at current prices, whereas Real GDP is measured at constant prices to account for inflation.

A Nominal GDP is measured at factor cost, Real GDP at market price

B Nominal GDP is measured at constant prices, Real GDP at current prices

C Nominal GDP is measured at current prices, Real GDP at constant prices

D There is no difference between Nominal and Real GDP

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