A country reported a nominal GDP of $85 billion in 2015 and $100 billion in 2014 and reported a GDP deflator of 100 in 2015 and 105 in 2014.What happened to real output and prices from 2014 to 2015?
A) Real output and prices both rose.
B) Real output rose and prices fell.
C) Real output and prices both fell.
D) Real output fell and prices rose.

Question

Quizplus · Accepted Answer

The Answer of A country reported a nominal GDP of $85 billion in 2015 and $100 billion in 2014 and reported a GDP deflator of 100 in 2015 and 105 in 2014.What happened to real output and prices from 2014 to 2015?
A) Real output and prices both rose.
B) Real output rose and prices fell.
C) Real output and prices both fell.
D) Real output fell and prices rose.

A Country Reported a Nominal GDP of $85 Billion in 2015