If real GDP is greater than nominal GDP in a given year, will value of GDP b higher than in the base period?

There is no complication here. It is simple.


Case 1: Base year real GDP is 100. Given year real GDP is 90 and nominal GDP is 89. These figures are mutually consistent. Assume no inflation since base year but a small fall in prices in the given year. The real output is assumed to have gone down by 10% from the base year. Given theses data, we can see that Real GDP although greater than the nominal GDP in the given year, Real GDP in the given year is lower than the real GDP in the base year. So, if real GDP is greater than nominal GDP in a given year, the value of GDP may not necessarily be higher than in the base period. This method of proof is called counter example proof.


Case2: Base year real GDP is 100. Given year real GDP is 120 and nominal GDP is 108. These figures are also mutually consistent. Assume no inflation since base year but a 10% or so fall in prices in the given year. The real output is assumed to have gone up by 20% from the base year. Thus the net result is that while the real GDPin the given year is higher than the real GDP in the base year. So, in this case, real GDP is greater than nominal GDP in a given year, and the value of GDP is also higher than in the base period. But this need not be the case all the time.|||Yes, but it is when there is a deflation,,,, Actually Nominal GDP is Real GDP corrected for inflation,





if not, then the vise versa is deflation.|||something is telling me yes.





but i'm on holidays so i haven't had any contact with my economics class for like two months.





but something in my brain is telling me yes.





it sounds like such a true or false question so maybe i've had it as one or something.





i'm probably wrong.