Question:

Real GDP changes when?

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a. all prices change by the same proportion, but all outputs remnain constant.

b. some but not all prices chang, but outputs remian constant.

c. some outputs change, but the price remain constant.

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2 ANSWERS


  1. The GDP is nothing but the total output of goods and services,so if the prices rise the GDP increase but not the "real GDP" the output's real value should increase ...economy should produce more to increse the real GDP.


  2. C. When outputs change without a change in the prices, it means real GDP, the amount of GDP converted to cover inflation, also changes.

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