If all quantities produced rise by 10 percent and all prices fall by 10 percent, which of the following occurs? a. Real GDP rises by 10 percent, while nominal GDP falls by 10 percent. b. Real GDP rises by 10 percent, while nominal GDP is unchanged. c. Real GDP is unchanged, while nominal GDP rises by 10 percent. d. Real GDP is uncharged, while nominal GDP falls by 10 percent.

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Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509
BuyFind

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509

Solutions

Chapter 10, Problem 6CQQ
Textbook Problem

If all quantities produced rise by 10 percent and all prices fall by 10 percent, which of the following occurs?

a. Real GDP rises by 10 percent, while nominal GDP falls by 10 percent.

b. Real GDP rises by 10 percent, while nominal GDP is unchanged.

c. Real GDP is unchanged, while nominal GDP rises by 10 percent.

d. Real GDP is uncharged, while nominal GDP falls by 10 percent.

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