"If nominal GDP is less than real GDP, then the price level must have fallen during the year."
A. Agree. Nominal GDP will be less than real GDP if the price level falls and is higher than the base year's prices.
B. Agree. Real GDP will be less than nominal GDP if the price level falls and is lower than the base year's prices.
C. Disagree. Real GDP will be equal to nominal GDP if the price level increases and is equal to the base year's prices.
D. Disagree. Nominal GDP is less than real GDP if the current price level is less than the base year price level. A fall in the price level during the year is neither necessary nor sufficient to cause nominal GDP to be less than real GDP.
Answer: D. Disagree. Nominal GDP is less than real GDP if the current price level is less than the base year price level. A fall in the price level during the year is neither necessary nor sufficient to cause nominal GDP to be less than real GDP.