If real GDP rises and nominal GNP falls, which of the following must be true? 1) Both
Question:
If real GDP rises and nominal GNP falls, which of the following must be true?
1) Both the price level has decreased and production in the country by foreign firms has grown faster than has production outside of the country by domestic firms.
2) Production in the country by foreign firms has grown faster than has production outside of the country by domestic firms.
3) Either the price level has decreased or production in the country by foreign firms has grown faster than has production outside of the country by domestic firms, but possibly both of those choices.
4) Either the price level has decreased or production in the country by foreign firms has grown faster than has production outside of the country by domestic firms, but not both choices.
5) The price level has decreased.
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws