Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this information, we know with certainty that
A. real GDP increased during 2009.
B. the GDP deflator increased during 2009.
C. both the GDP deflator and real GDP fell during 2009.
D. more information is needed to answer this question.
Answer:D
Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this information, we know with certainty that
A. real GDP increased during 2009. B. the GDP deflator increased during 2009. C. both the GDP deflator and real GDP fell during 2009. D. more information is needed to answer this question.