Between two given years,if real gross domestic product (GDP)and nominal GDP grow at the same rate,then
A) the price level increased.
B) prices must have remained constant between the two years.
C) quantities must have remained constant between the two years.
D) prices and quantities must have remained constant between the two years.
E) prices and quantities must have grown at the same rate between the two years.

Question

Quizplus · Accepted Answer

If real GDP and nominal GDP grow at the same rate, it means that the inflation rate (change in price level) is zero. Therefore, prices must have remained constant between the two years.

Between Two Given Years,if Real Gross Domestic Product (GDP)and Nominal