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If the nominal GDP increased and inflation was positive, the real GDP increased if watch

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    If the nominal GDP increased and inflation was positive, the real GDP increased if:
    a)Inflation was more than the growth rate of the nominal GDP
    b)If the nominal GDP increased at the same as the inflation
    c)It's impossible for the real GDP to decrease since both the inflation and the nominal GDP increased.
    d)Inflation was less than the growth rate of the nominal GDP
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    What would happen if the inflation rate and nominal growth rate were equal?
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    (Original post by MilkyChristy)
    If the nominal GDP increased and inflation was positive, the real GDP increased if:
    a)Inflation was more than the growth rate of the nominal GDP
    b)If the nominal GDP increased at the same as the inflation
    c)It's impossible for the real GDP to decrease since both the inflation and the nominal GDP increased.
    d)Inflation was less than the growth rate of the nominal GDP
    d)
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    (Original post by Camilli)
    What would happen if the inflation rate and nominal growth rate were equal?
    There would be no change in real GDP. This is because the rise in the general price level (inflation) must have contributed to the entire increase in nominal GDP, and so there has been no change in actual real output, just a change in prices, hence real GDP (or you can call it real output) stays the same.
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    Yes, I know. When OP knows that, he/she will be able to work out the answer to the original question.
 
 
 
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