A country reported a nominal GDP of $85 billion in 2012 and $100 billion in 2011 and reported a GDP deflator of 100 in 2012 and 105 in 2011.What happened to real output and prices from 2011 to 2012?
A) Real output and prices both rose.
B) Real output rose and prices fell.
C) Real output and prices both fell.
D) Real output fell and prices rose.
Correct Answer:
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