Which of the following statements is true?
A) If a country's nominal GDP is rising, then its production must also be rising.
B) If a country's nominal GDP is constant, then its production must also be constant.
C) If a country's real GDP is constant, then the price level must also be constant.
D) If a country's real GDP is constant, then its production must also be constant.

Question

Quizplus · Accepted Answer

Real GDP is adjusted for inflation and reflects the volume of production. If real GDP is constant, it means the quantity of goods and services produced in the economy remains unchanged, regardless of changes in price levels.

Which of the Following Statements Is True