1.1. During World War II, the government did a good job measuring nominal GDP. But if the price level was calculated incorrectly, we might get a completely wrong idea about what happened with real GDP. During World 114 • PART 2 • EconomicGrowth War II, price ceilings were in place. That means that some things that would've been expensive were artificially cheap instead. Within a few years of the war's end, price controls finally ended, and the price level spiked up about 20%.

If the true price level during the war was actually 20% higher than reported, would that mean real GDP is higher than the official number in question 1 Ob in the previous section, lower than that number, or is it still the same as that number?