Question

If real gdp rises while nominal gdp falls then prices on average have

Answer 1

Answer:

Explanation:

There is high inflation condition in the economy. This will automatically increase the nominal GDP without any real increase in GDP.(as prices of all goods and services will be increased). real GDP will decrease only when there is negative GDP growth.

Answer 2

Answer:

Explanation:

There is high inflation condition in the economy. This will automatically increase the nominal GDP without any real increase in GDP.(as prices of all goods and services will be increased). real GDP will decrease only when there is negative GDP growth.