Suppose that the nominal GDP of a country increases and the real GDP remains unchanged. If so, then the production must have _____, and the price level must have:
A) increased; remained unchanged.
B) decreased; remained unchanged.
C) remained unchanged; decreased.
D) remain unchanged; increased.

Question

Quizplus · Accepted Answer

The real GDP measures the value of economic output adjusted for price changes (inflation or deflation), while nominal GDP measures the value of economic output without adjusting for price changes. If nominal GDP increases but real GDP remains unchanged, it means that the overall price level has increased (inflation) without a change in the quantity of goods and services produced.

Suppose That the Nominal GDP of a Country Increases and the Real