Question

Suppose a country reported a nominal GDP of 85 billion in 2019 and 100 billion in 2018 and reported a GDP deflator of 100 in 2019 and of 105 in 2018, then from 2018 to 2019 real output a. rose and prices fell b. fell and prices rose c. and prices both rose d. and prices both fell

Name: suppose a country reported a nominal gdp of 85 billion in 2019 and 100 billion in 2018 and reported a gdp deflator of 100 in 2019 and of 105 in 2018 then from 2018 to 2019 real output a rose 35772
Uploaded: 2022-10-12T19:23:35-08:00
Duration: 5 min 17 s
Channel: Crystal Wang
Description: suppose a country reported a nominal gdp of 85 billion in 2019 and 100 billion in 2018 and reported a gdp deflator of 100 in 2019 and of 105 in 2018 then from 2018 to 2019 real output a rose 35772

          Suppose a country reported a nominal GDP of 85 billion in 2019 and 100 billion in 2018 and reported a GDP deflator of 100 in 2019 and of 105 in 2018, then from 2018 to 2019 real output
a. rose and prices fell
b. fell and prices rose
c. and prices both rose
d. and prices both fell

Added by Juan Carlos A.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Crystal Wang

10/12/2022

Step 1

Real GDP 2019 = Nominal GDP 2019 / GDP Deflator 2019 Real GDP 2019 = 85,000,000,000 / 1.00 Real GDP 2019 = 85,000,000,000 ** Show more…

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Suppose a country reported a nominal GDP of 85 billion in 2019 and 100 billion in 2018 and reported a GDP deflator of 100 in 2019 and of 105 in 2018, then from 2018 to 2019 real output a. rose and prices fell b. fell and prices rose c. and prices both rose d. and prices both fell