If the Real GDP Increases from One Year to the Next

question 32

Multiple Choice

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.