What is the difference between real economic growth and nominal growth, and how do policy goals relate to both?

What is the difference between real economic growth and nominal growth, and how do policy goals relate to both?

• A. Real growth adjusts for inflation; nominal growth uses current prices.
• B. Real growth uses current prices; nominal growth uses inflation-adjusted prices.
• C. Real growth includes only capital formation; nominal growth includes government spending.
• D. Real growth ignores population growth; nominal growth includes it.

Answer: (A)