Suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the? present, what would be true of the relationship between nominal GDP and real GDP?
A. RGDP? = NGDP because prices are stable.
B. RGDP? < NGDP because prices are rising.
C. RGDP? > NGDP because prices are falling.
D. The relationship is uncertain without more information on prices.
Answer: B. RGDP? < NGDP because prices are rising.