Question

Why is it important to adjust nominal GDP to real GDP to account for inflation?

Answer 1

hopes this helps :Because it is measured in current prices, growing nominal GDP from year to year might reflect a rise in prices as opposed to growth in the amount of goods and services produced. If all prices rise more or less together, known as inflation, then this will make nominal GDP appear greater.

Answer 2

if you need it in simple form then tell me

Answer 3

@sandy011 nahh its all good thank you

Answer 4

you welcome!