WBCS.LIVE practice question

Which of the following statements(s) is true? A) Higher inflation means lower real GDP, ceteris paribus B) Price Index is 200 if nominal GDP and real GDP are the same.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Only B
  2. Both A and B
  3. Only A
  4. Neither A nor B

Correct answer and explanation

Correct answer: Only A