If real GDP falls from one period to another, we can conclude thatNone of these necessarily occursnominal GDP fell.prices decreased.inflation occurred.
Question
If real GDP falls from one period to another, we can conclude thatNone of these necessarily occursnominal GDP fell.prices decreased.inflation occurred.
Solution
The statement seems to be incomplete, but I'll try to answer based on what I understand.
Real GDP (Gross Domestic Product) is the economic output of a country with inflation taken into account, while nominal GDP is not adjusted for inflation.
If real GDP falls from one period to another, it doesn't necessarily mean that nominal GDP fell, prices decreased, or inflation occurred. Here's why:
-
Nominal GDP could still rise if the prices of goods and services increase, even if the actual quantity of goods and services produced (real GDP) decreases.
-
Prices could either increase, decrease, or stay the same when real GDP falls. It depends on various factors such as changes in supply and demand.
-
Inflation is a general increase in prices and fall in the purchasing value of money. A fall in real GDP doesn't necessarily mean that inflation occurred. It could be due to a decrease in the production of goods and services.
So, none of these necessarily occurs if real GDP falls from one period to another.
Similar Questions
Select Any One Of the Following Options: If real GDP falls from one period to another, we can conclude thatnominal GDP fell.prices decreased.None of these necessarily occursinflation occurred.
Suppose that nominal GDP in an economy in year 1 is $500 million and in year 2 is $600 million. If the price level of the goods and services produced has increased from an index number of 120 to an index number of 130 then, Group of answer choiceswhile nominal GDP increased between year 1 and year 2, real GDP must have decreased.while nominal GDP has decreased between year 1 and year 2, real GDP must have increased.while prices of the goods and services have increased by 10% between year 1 and year 2, real GDP has decreased by only 5%.while there has been inflation over this period, real GDP has still increased.
During an economic recession, when real GDP falls, unemployment usually .Group of answer choicesfallsrisesstays the samefalls or rises
There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run.Question 6Answera.decrease; increase to its initial levelb.increase; increases furtherc.decrease; decrease furtherd.increase; decrease to its initial value
If the money supply increases, while prices and velocity remain constant, real GDP will:
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.