If real GDP falls from one period to another, we can conclude that:
A)deflation occurred.
B)inflation occurred.
C)nominal GDP fell.
D)less goods and services have been produced.

Question

Quizplus · Accepted Answer

Real GDP measures the total value of goods and services produced in an economy adjusted for inflation. If real GDP falls from one period to another, it means that fewer goods and services have been produced, regardless of any change in prices. Deflation or inflation may or may not have occurred, and nominal GDP may have risen or fallen depending on price changes.

If Real GDP Falls from One Period to Another, We