Suppose That an Economy's Output Does Not Change from One

question 234

Multiple Choice

Suppose that an economy's output does not change from one year to the next, but the price level doubles. What happens to real GDP?

• A) Real GDP doubles.
• B) Real GDP is halved.
• C) Real GDP doesn't change.
• D) There is not enough information to determine what happens to real GDP.

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Definitions:

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