If nominal GDP decreases from one year to the next, _____ must have fallen.
A) prices
B) real GDP
C) prices and real GDP
D) Real GDP or prices or both

Name: If nominal GDP decreases from one year to the next, _____ must have fallen. A) prices B) real GDP C) prices and real GDP D) Real GDP or prices or both
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

Nominal GDP can decrease if either real GDP or prices (or both) fall. Therefore, the correct answer is D: Real GDP or prices or both.

If Nominal GDP Decreases from One Year to the Next