If real GDP increased and GDP decreased during the same year,we could conclude that

Question

Quizplus · Accepted Answer

If real GDP increased while nominal GDP (simply referred to as GDP in the question) decreased, it indicates that the output of goods and services increased when measured in constant prices, but the value of goods and services measured in current prices fell. This scenario suggests that the general price level fell during the year, which is a deflationary condition, not inflation. This does not directly relate to the unemployment rate, net exports, or imply that all choices are correct.

If Real GDP Increased and GDP Decreased During the Same