Both nominal and real GDP increase with the rise in the price level. State true or false.

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

False.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B
False.

Nominal GDP= $Output \times Price Level (calculated in current prices)$

Real GDP = $Output \times Price Level (calculated in fixed prices)$

Suggest Corrections

Similar questions

If a country’s nominal GDP increases, it means the country is producing more goods and services. State true or false.

Real GDP is always larger than real GDP per capita. State true or false.

If we expect a rise in price in near future of a commodity, then demand will increase. State true or false.

To alleviate poverty, the government can either target GDP growth or increase spending in social sectors. State true or false.

State True or False:

The resistivity of all pure metals increases with the rise in temperature.

Join BYJU'S Learning Program