If constant- dollar national income decreased by $6 billion over a one- year period, then it must be true that

Question

Quizplus · Accepted Answer

Constant-dollar national income refers to the real GDP, which is adjusted for inflation. A decrease in constant-dollar national income implies a decrease in real GDP or aggregate output. Therefore, the correct option is C. The remaining options are incorrect because they suggest an increase in the price level, individual output, or aggregate output, which is not consistent with the given information.

If Constant- Dollar National Income Decreased by $6 Billion Over