Which statement can be true when examining nominal GDP growth and real GDP growth?

When comparing nominal GDP growth to real GDP growth, it is important to understand the definitions: nominal GDP measures a country's total economic output without adjusting for inflation, while real GDP accounts for changes in price levels and thus provides a clearer picture of economic growth.

The statement that can be true when examining these two measurements is that the economy is experiencing inflation. When nominal GDP is increasing but real GDP is not growing at the same rate, this indicates that inflation is present, as the increase in nominal GDP can be attributed to rising prices rather than a real increase in economic output. This scenario arises because nominal GDP reflects both the increase in production and the increase in prices, while real GDP only captures the increase in production.

Other options relate to different economic conditions that may not necessarily be true when nominal GDP growth exceeds real GDP growth. For instance, a scenario of deflation, where prices are falling, would lead to a situation where nominal GDP may grow slower than real GDP. Real GDP growing faster than nominal GDP suggests disinflation or negative inflation, which contradicts the context of the original question. Finally, nominal GDP can indeed decrease in scenarios of economic downturns, while real GDP also has the potential to decline, depending on the economic conditions.