If the Real GDP increases from one year to the next, we could conclude the country experienced:
A) inflation and no change in output.
B) an increase in output and no change in prices.
C) a definite increase in output and may have experienced an increase in prices.
D) definite inflation and may have experienced an increase in output.

Question

Quizplus · Accepted Answer

Real GDP measures the value of goods and services produced in a country, adjusted for inflation. An increase in Real GDP indicates an increase in output, and it may also be accompanied by an increase in prices, but not necessarily.

If the Real GDP Increases from One Year to the Next