Asked by
Jemini Green
on Nov 30, 2024Verified
GDP will grow faster than real GDP unless
A) there is deflation.
B) there is inflation.
C) there is a recession.
D) prices rise faster than output.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic growth by reflecting the value of all goods and services produced at constant prices.
Deflation
A drop in the overall cost of goods and services, frequently resulting from a decrease in the availability of money or credit.
Inflation
The measurement of how swiftly the overall prices of goods and services increase, eroding the power to buy.
- Separate the concepts of real GDP from nominal GDP and realize the effects of inflation and deflation on these economic indicators.
Verified Answer
JM
Learning Objectives
- Separate the concepts of real GDP from nominal GDP and realize the effects of inflation and deflation on these economic indicators.