Answer to Question #137104 in Macroeconomics for Dane Botha

Question

If total output (production) remains the same and all prices double, then real Gross Domestic Product (GDP):

(a) Is constant and nominal GDP doubles;

(b) And nominal GDP are both constant;

(c) Is constant and nominal GDP is reduced by half;

(d) Doubles and nominal GDP is constant.

Answer 1

(a) is constant and nominal GDP doubles