If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same,which would rise?
A)both real GDP and nominal GDP.
B)real GDP but not nominal GDP.
C)nominal GDP but not real GDP.
D)neither nominal GDP nor real GDP.

Question

Quizplus · Accepted Answer

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, it means that the nominal GDP would increase since it measures the value of all goods and services produced at current prices. However, real GDP, which measures the value of all goods and services produced at constant prices, would not increase since the quantity of goods and services produced stayed the same. Therefore, only nominal GDP would rise.

If the Prices of All Goods and Services Produced in the Economy