Inflation that causes an increase in the prices of goods and services will, other things being equal, tend to decrease nominal GDP.

Name: Inflation that causes an increase in the prices of goods and services will, other things being equal, tend to decrease nominal GDP.
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Question

Quizplus · Accepted Answer

Inflation causes an increase in the prices of goods and services and, therefore, nominal GDP. However, it may decrease real GDP, as it decreases the purchasing power of money.

Inflation That Causes an Increase in the Prices of Goods