If the quantity of goods and services produced in the economy decreases
A) it may be possible for real GDP to increase.
B) real GDP would certainly increase.
C) it may be possible for nominal GDP to increase.
D) nominal GDP would certainly increase.
Answer: C
You might also like to view...
Which statement most adequately describes the productivity of trade relative to the productivity of agriculture and manufacturing?
A) Trade is essential in an economy once agriculture and manufacturing have developed, even though it is not productive. B) Trade is less productive than agriculture or manufacturing. C) The word productive must be applied to agriculture or manufacturing in the same way it is applied to trade. D) Trade is productive only insofar as it distributes newly produced agricultural or manufactured goods. E) Trade is rarely productive because it almost never increases the quantity of goods in the economy.
An increase in price causes exit from a constant-cost industry.
Answer the following statement true (T) or false (F)