Question

If the prices of all goods and services produced in the economy rose while the quantity of all goods and servicesstayed 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.

Answer 1

Answer:

c.nominal GDP but not real GDP. 

Explanation:

Nominal GDP is total output produced in an economy multipled by current year prices.

Real GDP is total output produced in an economy multipled by base year prices.

Real GDP has been adjusted for inflation and it thus not affected by price increase.

If only price increases and not output, only nominal GDP increases.

I hope my answer helps you.