If real GDP declines in a given year, nominal GDP . rev: 04_09_2018 Multiple Choice must also be increasing may either rise or fall must also be declining is likely to remain constant

May either rise or fall

Explanation:

The differnce between the Real GDP and the Nominal GDP is inflation. Whereas Nominal GDP is calculated with the current prices, Real GDP uses the prices from a base year so as to negate the effects of inflation.

If Real GDP declines in a given year therefore, nominal GDP could rise if the inflation is high enough to make it seem as though the country is producing more goods and services even if this is not the case.

However, Nominal GDP could also fall if the economy is simply contracting with a low inflation rate and this was the reason that the Real GDP fell as well.

how does that happen,where u steel points

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.