Suppose that GDP increases in 1999 but real GDP decreases during the year.It can be concluded that
A)output declined in 1999.
B)the price level fell in 1999.
C)inflation was zero in 1999.
D)output increased in 1999.

Question

Quizplus · Accepted Answer

If real GDP decreases while nominal GDP increases, it indicates that the output (quantity of goods and services produced) actually declined, but the nominal increase was due to rising prices (inflation), not an increase in physical output.

Suppose That GDP Increases in 1999 but Real GDP Decreases