If real GDP doubles and the GDP deflator doubles, what will happen to nominal GDP?
A) It will stay the same.
B) It will double.
C) It will triple.
D) It will quadruple.

Name: If real GDP doubles and the GDP deflator doubles, what will happen to nominal GDP? A) It will stay the same. B) It will double. C) It will triple. D) It will quadruple.
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Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying real GDP by the GDP deflator. If both double, the nominal GDP will quadruple (2 times 2 equals 4).

If Real GDP Doubles and the GDP Deflator Doubles, What