GDP is adjusted for inflation bias computed in different years using a common set of fixed base-period prices.

Question 5 options:

True

False

True.

Explanation:

The nominal GDP is the estimation of all the last products and enterprises that an economy created during a given year. It is arrived by utilizing the costs that are at present in the year in which the yield is delivered. In financial matters, an ostensible worth is communicated in money-related terms. For instance, a notable quality can change because of movements in amount and cost.

The real GDP is the all-out estimation of the entirety of the last products and ventures that an economy produces during a given year, representing inflation.