Answer :
If the real GDP in 2022 using 2020 prices is lower than the nominal GDP of 2022, it means that prices in 2020 are higher than prices in 2022.
To understand why, let's break it down step by step:
1. Real GDP: Real GDP measures the value of goods and services produced in an economy, taking into account changes in prices over time. It is adjusted for inflation to reflect changes in purchasing power.
2. Nominal GDP: Nominal GDP, on the other hand, measures the value of goods and services produced in an economy using current market prices. It does not account for changes in prices over time.
3. If the real GDP in 2022 using 2020 prices is lower than the nominal GDP of 2022, it means that when we adjust the current GDP using 2020 prices (which were higher), the value decreases. This suggests that prices in 2022 are lower than they were in 2020.
To summarize, if the real GDP in 2022 using 2020 prices is lower than the nominal GDP of 2022, we can conclude that prices in 2020 are higher than prices in 2022.
Learn more about GDP:
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