If GDP rises,A) real GDP may either rise or fall or stay the same.B) we can be certain that the price level has risen.C) real GDP must fall.D) real GDP must also rise.

Question

Britney Turner · Accepted Answer

Final Answer : A, Explanation :  GDP can rise due to an increase in the production of goods and services (real GDP) or due to an increase in prices (inflation). Thus, real GDP may rise, fall, or stay the same depending on the relative changes in volume and price level.

If GDP rises,

A) real GDP may either rise or fall or stay the same.
B) we can be certain that the price level has risen.
C) real GDP must fall.
D) real GDP must also rise.

Definitions

Learning Objectives

Learning Objectives

Related questions