Real GDP changes when
A)all prices change by the same proportion, but all outputs remain constant.
B)some but not all prices change, but outputs remain constant.
C)some outputs change, but prices remain constant.
D)Both B and C.

Question

Quizplus · Accepted Answer

Real GDP changes when either outputs or prices change. Option B indicates that some prices change while outputs remain constant, and option C mentions that some outputs change while prices remain constant. Therefore, the correct choice is D, which includes both options. Option A is incorrect as it assumes all prices and outputs remain constant, whereas in reality, changes in prices and outputs occur concurrently.

Real GDP Changes When