Nominal GDP rises more than real GDP when it includes both increased production and inflation.
What makes nominal GDP larger than real GDP?
The increase in nominal GDP can be larger than the increase in real GDP if it includes both the growth in the quantity of goods and services produced and an increase in prices (inflation).
Nominal GDP reflects current market prices, while real GDP adjusts for changes in the price level. If prices rise, nominal GDP will increase more than real GDP, indicating the impact of inflation on the overall economic output.