Assume the Table Has Recorded the Total Output and Prices

question 135

Multiple Choice

Assume the table has recorded the total output and prices of the only two goods produced. Looking at the changes in real GDP and nominal GDP from 2000 to 2001, we can conclude that because:

• A) real and nominal GDP increased at the same rate, there was no change in prices, only output.
• B) nominal GDP rose more than real GDP, both prices and output must have increased.
• C) real GDP rose more than nominal GDP, output must have increased more than prices.
• D) real and nominal GDP increased at the same rate, there was no change in output, only prices.

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