If the percent change in the price level is ________ than the percent change in ________, ________.
A) smaller; nominal GDP; real GDP shrinks
B) greater; nominal GDP; real GDP shrinks
C) greater; real GDP; nominal GDP shrinks
D) greater; real GDP; nominal GDP always stays the same
E) Not enough information is given.

Question

Quizplus · Accepted Answer

If the percent change in the price level (inflation) is greater than the percent change in nominal GDP, it implies that the real GDP, which is nominal GDP adjusted for inflation, will shrink.

If the Percent Change in the Price Level Is ________