CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

A recessionary gap is the amount by which ______

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
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