Suppose that GDP increases in 2015,but real GDP decreases during the year.It can be concluded that

Question

Quizplus · Accepted Answer

If GDP increases but real GDP (the measure of output adjusted for inflation) decreases, it means that the economy produced more goods and services in nominal terms but the increase in prices outpaced the increase in output, resulting in a decline in real GDP. This could be due to factors such as an increase in input costs or a decrease in productivity. Therefore, it can be concluded that output declined or we had deflation in 2015.

Suppose That GDP Increases in 2015,but Real GDP Decreases During