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

question 52

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 nominal GDP?

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

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