If the real GDP of a country increases and the nominal GDP of a country falls, then it can be concluded that the output of the country must have_____ and the price level must have:
A) increased; increased.
B) increased; decreased.
C) decreased; increased.
D) decreased; decreased.

Question

Quizplus · Accepted Answer

When real GDP increases, it indicates that the output of the country has increased. If nominal GDP falls while real GDP increases, it implies that the price level must have decreased, because nominal GDP is the product of real GDP and the price level.

If the Real GDP of a Country Increases and the Nominal