When real GDP increases, what could not have happened?
A) rising prices
B) increasing population
C) falling prices
D) decreasing population
E) decreasing quantities produced

Question

Quizplus · Accepted Answer

Real GDP measures the value of all goods and services produced within a country's borders, adjusted for price changes. An increase in real GDP implies that the quantity of goods and services produced has increased. Therefore, it is not possible for real GDP to increase if the quantities produced are decreasing.

When Real GDP Increases, What Could Not Have Happened