If the percent change in prices is greater than the percent change in the nominal GDP, the real GDP shrinks.

Name: If the percent change in prices is greater than the percent change in the nominal GDP, the real GDP shrinks.
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Quizplus · Accepted Answer

Real GDP is a measure of economic output adjusted for inflation, so if prices increase more than the nominal GDP, the real GDP will decrease as the purchasing power of the GDP decreases.

If the Percent Change in Prices Is Greater Than the Percent