Question

if nominal gdp rises, group of answer choices?A.real gdp may either rise or fall B.we can be certain that the price level has risen C.real gdp must fall D.real gdp must also rise.

Answer 1

When nominal GDP rises, real GDP may either rise or fall. It can be due to an increase in output or an increase in prices, and it is important to separate the increase in prices from the nominal GDP to determine changes in real GDP.

Step-by-step explanation:

When nominal GDP rises, it can mean that either real GDP has risen or that prices have increased. Therefore, option A is the correct answer: real GDP may either rise or fall. It is important to note that nominal GDP can increase due to an increase in output or an increase in prices. To determine whether real GDP has changed, it is necessary to separate the increase in prices from the nominal GDP.