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Tpy6a [65]
2 years ago
5

If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the sam

e, which would rise? A. nominal GDP but not real GDP. B. both real GDP and nominal GDP. C. real GDP but not nominal GDP. D. neither nominal GDP nor real GDP.
Social Studies
2 answers:
USPshnik [31]2 years ago
8 0

Answer:

A. nominal GDP but not real GDP.

Explanation:

Nominal GDP refers to the value of GDP calculated at current prices, ie the year in which the product was produced and traded. Real GDP is calculated at constant prices, where a base year is chosen, thus eliminating the effect of inflation.

According to these concepts we can state that in a situation where the prices of all goods and services produced in the economy increase while the quantity of all goods and services remain the same, nominal GDP would increase and real GDP would remain the same, because whereas nominal GDP is influenced at current prices while real GDP is influenced at constant prices.

topjm [15]2 years ago
3 0

Answer:

A. nominal GDP but not real GDP

Explanation:

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