Asked by
Natalie Chambers
on Oct 13, 2024
Verified
If GDP increases faster than the GDP deflator,
A) real GDP will rise.
B) real GDP will fall.
C) real GDP will stay the same.
D) There is not enough information to determine what happens to real GDP.
GDP Deflator
A measure of the level of prices of all new, domestically produced, final goods and services in an economy.
Real GDP
Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country, reflecting the actual changes in economic output.
- Differentiate between nominal GDP and real GDP and understand the implications of changes in each.
- Comprehend the significance of the GDP deflator and inflation in the economic context.
Verified Answer
AS
Learning Objectives
- Differentiate between nominal GDP and real GDP and understand the implications of changes in each.
- Comprehend the significance of the GDP deflator and inflation in the economic context.