In the event of deflation,or negative inflation,then
A)real GDP is always lower than nominal GDP
B)real GDP is always lower than nominal GDP after the base year.
C)real GDP is always lower than nominal GDP.
D)real GDP is always higher than nominal GDP before the base year.
E)None of the above

Question

Quizplus · Accepted Answer

Deflation means that the general price level is falling. In such a scenario, real GDP, which is adjusted for inflation, can be higher or lower than nominal GDP depending on the base year and the specific price changes. Therefore, none of the given statements are universally true.

In the Event of Deflation,or Negative Inflation,then