If nominal GDP is declining,it is necessarily true that Real GDP is also declining.

Question

Quizplus · Accepted Answer

If nominal GDP is declining, it means that the total value of goods and services produced in an economy is decreasing. Real GDP, on the other hand, measures the total value of goods and services produced in an economy, adjusted for inflation. Therefore, if nominal GDP is declining, it is likely that real GDP is also declining, as the value of goods and services produced is decreasing in real terms.

If Nominal GDP Is Declining,it Is Necessarily True That Real