In the base year:
A. nominal and real GDP are equal by definition.
B. nominal GDP is always larger than real GDP because prices are held constant.
C. real GDP is always larger than nominal GDP because prices are held constant.
D. real GDP will only be larger than nominal GDP if prices increased in the base year.
Answer: A
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.