Well, yes they are, and here's how its done.
...suppose GDP of Mogambo Land last year was 100 widgets produced, and sold at a buck apiece. Total Mogambo Land GDP=$100.
Now this year, the economy consisted of 90 widgets produced, yet sold at $1.20 each. Nominal GDP would show an increase to $108, which sounds good to those who do not have Mogambo-Sharpened Economic Senses (MSES), and those who do laugh as one, "Hahaha!"
Normally (back when the government was not filled with loathsome liars and cheats because the newspapers didn't let them get away with it), total revenues ($108) would be properly discounted by the inflation in prices (20%), which is the loss of purchasing power of the dollar, and thus the real, inflation-adjusted change in prices (20%) exactly matched inflation. So real GDP= 90, which is 90 widgets produced and sold for one dollar's worth of buying power each, so GDP is actually down by 10% (only 90 widgets produced)!
http://news.goldseek.com/RichardDaughty/1146063840.php
Bump!
It's convenient for Mogambo to be able to claim inflation is 20% in his example without having to back it up. Maybe you can share with us exactly what numbers the government is misrepresenting - is it GDP, CPI, employment or all three - and then show us what the government numbers are and how they compare to what the real numbers are. Pulling a number out of the air, for the purpose of an example, is much easier than having to prove it in real life.