If real GDP falls from one period to another and the price level stays the same,we can conclude that

Question

Quizplus · Accepted Answer

Real GDP measures the value of goods and services produced adjusted for inflation, so if real GDP falls while the price level stays the same (i.e. there is no inflation), it means that the value of goods and services produced (nominal GDP) must have also fallen. Therefore, the correct answer is C) Nominal GDP decreased.

If Real GDP Falls from One Period to Another and the Price