In a given year,if real GDP equals non-adjusted GDP,then:
A) output did not grow.
B) there was no inflation.
C) output was over-adjusted for inflation.
D) the growth in output was equal to the growth in the price level.
E) the growth in output was greater than the growth in the price level.

Question

Quizplus · Accepted Answer

Non-adjusted GDP is not adjusted for inflation, while real GDP is adjusted for inflation. If real GDP equals non-adjusted GDP, then there is no inflation in that given year. Therefore, choice B is the best answer.

In a Given Year,if Real GDP Equals Non-Adjusted GDP,then