Answer:
German involvement in the Spanish Civil War commenced with the outbreak of war in July 1936, with Adolf Hitler immediately sending in powerful air and armored units to assist General Francisco Franco and his Nationalist forces. The Soviet Union sent in smaller forces but a lot of modern weapons to assist the Republican government, while Britain and France and two dozen other countries set up an embargo on any munitions or soldiers into Spain. Nazi Germany also signed the embargo but simply ignored it.
The war provided combat experience with the latest technology for the German military. However, the intervention also posed the risk of escalating into a world war for which Hitler was not ready. He, therefore, limited his aid, and instead encouraged Mussolini to send in large Fascist Italian units. Franco's Nationalists were victorious; he remained officially neutral in the Second World War, but helped the Axis in various ways from 1940 to 1943, even offering to join the war on 19 June 1940 in exchange for help building Spain's colonial empire. The Spanish episode lasted three years and was a smaller-scale prelude to the world war which broke out in 1939.
Nazi support for General Franco was motivated by several factors, including as a distraction from Hitler's central European strategy, and the creation of a Spanish state friendly to Germany to threaten France. It further provided an opportunity to train men and test equipment and tactics.
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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 .
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