If a country's real GDP is constant over time, then:
A) there has been no inflation in the economy.
B) there has been no deflation in the economy.
C) the rate of inflation has been the same as the rate of decrease in production.
D) there has been no change in production in the economy.

Question

Quizplus · Accepted Answer

Real GDP is adjusted for inflation and reflects the value of all goods and services produced in an economy in a given year, measured in base-year prices. If real GDP is constant, it means the physical volume of production has not changed, regardless of inflation or deflation rates.

If a Country's Real GDP Is Constant Over Time, Then