If both real GDP and nominal GDP remain constant between two years, then it can be concluded that:
A) neither price level nor output changed.
B) both output and price level increased by the same percentage.
C) both output and price level decreased by the same percentage.
D) output increased and price level decreased by the same percentage.

Question

Quizplus · Accepted Answer

When both real GDP and nominal GDP remain constant, it indicates that there has been no change in the output (quantity of goods and services produced) and no change in the price level. Real GDP measures the value of economic output adjusted for price changes, while nominal GDP measures the value of economic output based on current prices. If both are constant, it means prices and output have not changed.

If Both Real GDP and Nominal GDP Remain Constant Between