If nominal GDP decreases from one year to the next,_____ must have fallen.
A) prices
B) real GDP
C) prices and real GDP
D) real GDP or prices or both

Name: If nominal GDP decreases from one year to the next,_____ must have fallen. A) prices B) real GDP C) prices and real GDP D) real GDP or prices or both
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Question

Quizplus · Accepted Answer

Nominal GDP can only decrease if either prices or real GDP or both decrease. Therefore, the correct choice is D, which states that real GDP or prices or both must have fallen.

If Nominal GDP Decreases from One Year to the Next,_____