Question

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise? a. both real GDP and nominal GDP. b. real GDP but not nominal GDP. c. nominal GDP but not real GDP. d. neither nominal GDP nor real GDP. 1

Answer 1

Answer:

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, nominal GDP but not real GDP - Option C

Explanation:

if there is an increase in the prices of all goods and services produced in the economy while the quantity of all goods and services remained the same, the outcome would be an increase in the nominal GDP.

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, nominal GDP but not real GDP - Option C