Answer :
if real GDP in 2022 (measured using 2021 prices) is lower than nominal GDP in 2021, A. it indicates a decline in output in 2022 compared to 2021.
If real GDP in 2022 (measured using 2021 prices) is lower than nominal GDP in 2021, it implies that there has been a decrease in the quantity of goods and services produced in 2022 relative to the value of goods and services produced in 2021. A. The statement "output in 2022 is lower than output in 2021" (option A) is a plausible explanation. Real GDP measures the value of output adjusted for changes in prices, so if real GDP is lower, it suggests a decline in actual production levels.
B. The statement "prices in 2022 are higher than prices in 2021" (option B) cannot be inferred solely from the given information. It is possible that prices have remained constant or even decreased, but the decline in real GDP could be due to a decrease in production rather than an increase in prices. C. The statement "nominal GDP in 2022 equals nominal GDP in 2021" (option C) is incorrect. Nominal GDP reflects the value of goods and services produced at current market prices, and if real GDP is lower, it means that the nominal GDP in 2022 would likely be lower as well. D. The statement "real GDP in 2022 is larger than real GDP in 2021" (option D) is incorrect. Based on the given information, real GDP in 2022 is lower, not larger, than real GDP in 2021.
In summary, This could be due to various factors such as a decrease in production, changes in economic conditions, or shifts in aggregate demand and supply.
To learn more about GDP click here:
brainly.com/question/32775130
#SPJ11
