, while real GDP grew by only 2.3%
. This difference can be accounted for by the fact that _____.(1 point)
Responses
prices of goods and services decreased during the year
prices of goods and services decreased during the year
net exports were positive during the year
net exports were positive during the year
net exports were negative during the year
net exports were negative during the year
prices of goods and services increased during the year
1 answer
The correct response is:
prices of goods and services increased during the year
This is because the difference between nominal GDP and real GDP growth can be attributed to inflation. When nominal GDP grows faster than real GDP, it indicates that the overall price level of goods and services has increased.
