Which of the Following Is a True Statement About Real

Multiple Choice

Which of the following is a true statement about real and nominal GDP?

A) If nominal GDP increases from one year to the next, we know that production of goods and services has risen.
B) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and services year after year.
C) Increases in average prices do not affect the calculation of nominal GDP.
D) If real GDP increases from one year to the next, we know that production of goods and services has risen.