Is It Possible for a Country's Nominal GDP to Increase

question 107

Multiple Choice

Is it possible for a country's nominal GDP to increase and real GDP to decrease from one year to the next?

• A) Yes, it would indicate a larger rise in prices relative to a decrease in output.
• B) No, since prices are held constant and that would be mathematically impossible.
• C) Yes, it would indicate a larger rise in output relative to a decrease in prices.
• D) No, since output is held constant and that would be mathematically impossible.

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