If real GDP in 2016 (using 2009 prices)is lower than nominal GDP of 2015,then
A)prices in 2016 are lower than prices in 2015.
B)nominal GDP in 2016 equals nominal GDP in 2015.
C)prices in 2016 are higher than prices in 2015.
D)real GDP in 2016 is larger than real GDP in 2015.

Question

Quizplus · Accepted Answer

If real GDP in 2016 (using 2009 prices) is lower than nominal GDP of 2015, it implies that prices in 2016 are lower than prices in 2015. This is because if prices remain the same, real GDP would have been equal to or greater than nominal GDP. Therefore, choice A is the best option.

If Real GDP in 2016 (Using 2009 Prices)is Lower Than