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1 year ago

If real gdp falls from one period to another, we can conclude that: ________

Social Studies

1 answer:

Mandarinka [93]1 year ago

7 0

If real GDP falls from one period to another, we can conclude that:

<u>deflation occurred.</u>

Real GDP adjusts the level of output for any potential price adjustments that may have occurred over time; nominal GDP adjusts the level of output for changes in the price level using prices from a base year (constant prices) rather than the "current prices" used in nominal GDP.

The GDP deflator is a price index that tracks the average prices of all finished products and services produced inside a country's boundaries over time. It is used to adjust nominal GDP to determine real GDP.

So when the real GDP falls it can be concluded that deflation has occurred in the economy that is fall in prices .

To learn more about deflation click here :

brainly.com/question/11634015

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