What fundamental economic concept distinguishes nominal GDP from real GDP. (1 point)
Responses
a Nominal GDP is the total value of goods and services produced in a country in current market prices, while read GDP adjusts for inflation and deflation, which provides a measure of output in constant prices.
b Nominal GDP is used to measure an economy’s output, while real GDP is a concept only applicable to financial transactions and investments.
c Real GDP is the total value of goods and services produced, while nominal GDP represents only the inflation adjusted economic output.
d Nominal GDP is always lower than real GDP because it accounts for future expectations.