Real GDP and the consumer price index appear to move up and down together.

Question

Quizplus · Accepted Answer

Real GDP and the consumer price index are two different measures, and while they can both increase or decrease in certain economic situations, they do not necessarily always move up and down together. In fact, increases in GDP may sometimes coincide with decreases in CPI, indicating that there is economic growth without a corresponding increase in prices.

Real GDP and the Consumer Price Index Appear to Move