Is it possible for a country's nominal GDP to increase and real GDP to decrease from one year to the next?
A. Yes, it would indicate a larger rise in prices relative to a decrease in output.
B. No, since prices are held constant and that would be mathematically impossible.
C. Yes, it would indicate a larger rise in output relative to a decrease in prices.
D. No, since output is held constant and that would be mathematically impossible.
Answer: A
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