is it possible for nominal GDP in a year to be less than rea

is it possible for nominal GDP in a year to be less than real GDP in the same year?

Solution

Before solving the question, lets first discuss the difference between nominal GDP and real GDP. Real GDP is the value of all the goods and services adjusted for inflation or deflation whereas the Nominal GDP is the value of goods and services produced in a country in a given year ignoring the inflation or deflation level.

In cases of inflationary environments, as the price of goods are rising the Nominal GDP will always be equal or higher than the Real GDP; but in cases of deflationary environments the Nominal GDP can be less than the Real GDP.

I hope my solution solves your query.