If the quantity of output produced remains unchanged between 2018 and 2028 but the price of allgoods falls by 10% over this period, what can we say about the period from 2018 to 2028? 1.The percentage change in real GDP will be larger than the percentage change in nominal GDP 2.We cannot compare changes in nominal GDP to changes in real GDP without further information 3.The percentage change in nominal GDP will be larger than the percentage change in real GDP 4.The percentage change in nominal GDP will equal the percentage change in real GDP

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 9WNG
icon
Related questions
Question

If the quantity of output produced remains unchanged between 2018 and 2028 but the price of allgoods falls by 10% over this period, what can we say about the period from 2018 to 2028?

1.The percentage change in real GDP will be larger than the percentage change in nominal GDP

2.We cannot compare changes in nominal GDP to changes in real GDP without further information

3.The percentage change in nominal GDP will be larger than the percentage change in real GDP

4.The percentage change in nominal GDP will equal the percentage change in real GDP

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Circular Flow of Income
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning