If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:
A) prices went up, but output stayed the same.
B) prices stayed the same, but output went up.
C) both prices and output went up.
D) both prices and output stayed the same.

Question

Quizplus · Accepted Answer

Nominal GDP increases when either prices or output or both increase. If real GDP increases by less, it indicates that prices went up, contributing to the nominal GDP increase, while output also increased but to a lesser extent.

If the Nominal GDP Were to Increase, but the Real