16. If all quantities produced rise by 5% and all prices fall by 5%, which of the following best describes what occurs? a. Real GDP rises by 5%, while nominal GDP falls by 5% b. Real GDP rises by 5%, while nominal GDP is unchanged c. Real GDP is unchanged, while nominal GDP rises by 5% d. Real GDP is unchanged, while nominal GDP falls by 5%
16. If all quantities produced rise by 5% and all prices fall by 5%, which of the following best describes what occurs? a. Real GDP rises by 5%, while nominal GDP falls by 5% b. Real GDP rises by 5%, while nominal GDP is unchanged c. Real GDP is unchanged, while nominal GDP rises by 5% d. Real GDP is unchanged, while nominal GDP falls by 5%
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 6CQQ
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![16. If all quantities produced rise by 5% and all prices fall by 5%, which of the following best
describes what occurs?
a. Real GDP rises by 5%, while nominal GDP falls by 5%
(6. Real GDP rises by 5%, while nominal GDP is unchanged
c. Real GDP is unchanged, while nominal GDP rises by 5%
d. Real GDP is unchanged, while nominal GDP falls by 5%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F574dcaa3-4413-4cd0-b889-c1f25f3de058%2Fce3591e4-6311-4ff7-9b80-f8c06653e4cb%2Fuwk3g5j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:16. If all quantities produced rise by 5% and all prices fall by 5%, which of the following best
describes what occurs?
a. Real GDP rises by 5%, while nominal GDP falls by 5%
(6. Real GDP rises by 5%, while nominal GDP is unchanged
c. Real GDP is unchanged, while nominal GDP rises by 5%
d. Real GDP is unchanged, while nominal GDP falls by 5%
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