If real GDP has increased,which of the following statements is always true?

Question

Quizplus · Accepted Answer

When real GDP increases, it means that there has been an increase in the production of goods and services within the economy, regardless of changes in prices. Therefore, output must have increased. However, the other options are not necessarily true. Nominal GDP could have increased or decreased depending on the changes in prices, and prices may have increased or decreased depending on the supply and demand conditions in the economy. It is also possible for output to decrease if prices have risen enough, but this is not always the case.

If Real GDP Has Increased,which of the Following Statements Is