mTopics 57 Saved The major dfference between nominal GDP and

m(Topics 5-7 Saved The major dfference between nominal GDP and real GDP is: 44 O nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices nominal GDP measures the value of output in constant prices, while real GDP measures output using current-year prices Onominal GDP measures the value of output with current year output levels, while real GDP measures output using constant output levels O nominal GOP measures the value of output with constant output levels, while real GDP measures output levels C Prev 44 of 45 Next > 0 Type here to search 0 LG FI F2 F3 F6

Solution

Correct option is (1).

Nominal GDP measures the market value of current year output at current year prices (i.e. in actual dollars), while real GDP measures the market value of current year output at base year prices (i.e. in constant dollars).