- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 10. Aggregate Output, Prices, and Economic Growth
- Subject 6. Equilibrium GDP and Prices
CFA Practice Question
A recessionary gap is the amount by which ______
B. nominal GDP exceeds potential GDP.
C. potential GDP exceeds real GDP.
D. real GDP exceeds potential GDP.
A. potential GDP exceeds nominal GDP.
B. nominal GDP exceeds potential GDP.
C. potential GDP exceeds real GDP.
D. real GDP exceeds potential GDP.
Correct Answer: C
User Contributed Comments 3
| User | Comment |
|---|---|
| AUAU | Can anyone explain what is nominal GDP? |
| JoeHoong | From Investopedia: Nominal GDP = GDP figure that has not been adjusted for inflation |
| uyeamba | AUAU, nominal GDP is the total value of goods and services produced in an economy in a particular period at current prices. it differs from real GDP which uses a base year's prices |