If real GDP falls from one period to another,we can conclude that

Question

Quizplus · Accepted Answer

Real GDP measures the value of all final goods and services produced within a country in a given period, adjusted for inflation. A fall in real GDP indicates a decrease in the total output of the economy, but it does not directly imply anything about inflation (increase in prices) or deflation (decrease in prices). Nominal GDP can fall, rise, or stay the same when real GDP falls, depending on the movement of prices. Therefore, none of the provided choices correctly follow from a fall in real GDP.

If Real GDP Falls from One Period to Another,we Can