One country reported a nominal GDP of $ 200 billion in 2008, and $ 180 billion in 2007. It also reported that the GDP deflator was 125 in 2008 and 105 in 2007. Between 2007 and 2008: a.the real product and the price level fell b.the real product and the price level increased c. real product increased and the price level fell d. real output fell, and the price level increased

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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check the correct option and explain why it is correct

 

One country reported a nominal GDP of $ 200 billion in 2008, and $ 180 billion in 2007. It also reported that the GDP deflator was 125 in 2008 and 105 in 2007. Between 2007 and 2008:

 

a.the real product and the price level fell

b.the real product and the price level increased

c. real product increased and the price level fell

d. real output fell, and the price level increased

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