When Real GDP Declines in a Particular Year, Nominal GDP

question 138

Multiple Choice

When real GDP declines in a particular year, nominal GDP:

• A)​will decline at a faster rate than real GDP if there is inflation.
• B)​will decline at a slower rate than real GDP if there is inflation.
• C)​may increase or decrease if there is inflation.
• D)​will increase if there is deflation.

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Definitions:

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