If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place?

Question

Quizplus · Accepted Answer

Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation, while real GDP is adjusted for inflation. If nominal GDP increased but real GDP remained unchanged, it indicates that the increase in nominal GDP was due to an increase in the price level, not output.

If Nominal GDP of a Country Increased and Real GDP