Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932.
-Refer to Table 23-4. If prices had remained constant between 1929 and 1930, Nominal GDP would have decreased
A)8.62%.
B)9.43%.
C)11.97%.
D)13.6%.

Question

Table 23-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932. 
-Refer to Table 23-4. If prices had remained constant between 1929 and 1930, Nominal GDP would have decreased
A)8.62%. 
B)9.43%. 
C)11.97%. 
D)13.6%.

Quizplus · Accepted Answer

Nominal GDP would have decreased by 8.62% if prices had remained constant between 1929 and 1930. This is because the decrease in real GDP (-10.7%) would have been partially offset by the increase in the price level (2.1%).

Table 23-4 the Table Below Reports Nominal and Real GDP for the for the U.S