What is the difference between real GDP and nominal GDP?

Practice Questions

Q1
What is the difference between real GDP and nominal GDP?
  1. Real GDP is adjusted for inflation, nominal GDP is not
  2. Nominal GDP is adjusted for inflation, real GDP is not
  3. They are the same
  4. Real GDP includes only government spending

Questions & Step-by-Step Solutions

What is the difference between real GDP and nominal GDP?
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