Question

Why is it important to use real GDP rather than nominal GDP figures when making comparisons of output across time periods?

Answer 1

The Real GDP shows changes only in output. It has been adjusted for inflation therefore changss in price level doesn't affect it. The nominal GDP shows changes in both output and price

Step-by-step explanation:

Nominal GDP = current year prices × output

Real GDP = base year prices × output

I hope my answer helps you.