Answer:
When inflation is occurring in a certain country, its nominal GDP will rise faster than its real GDP.
The correct answer is: d. nominal GDP; real GDP
Here's why:
Nominal GDP is the gross domestic product measured at current market prices. It does not take into account the changes in the price level (inflation or deflation).
Real GDP is the gross domestic product adjusted for inflation or deflation. It measures the value of goods and services produced by an economy in a given year at constant prices, typically using a base year for comparison.
During periods of inflation, the price level is increasing. Since nominal GDP is calculated using current market prices, it will include the effects of inflation and therefore, will rise more quickly than real GDP, which is corrected for price changes and reflects the actual growth in the volume of goods and services produced.
Step-by-step explanation: