Question

If real GDP in 2019 exceeds real GDP in 2018, did real output rise? Did Prices rise? Macroeconomics

Answer 1

real GDP = (Nominal GDP / GDP Deflator)*100

real GDP is an inflation-adjusted measure of nominal GDP that reflects the value of all final goods and services produced by an economy in a given year, expressed in base-year prices.

It shall be noted that when real GDP in 2019 exceeds real GDP in 2018, the real output is considered risen. Real GDP may be higher in 2019 versus than in 2018 under following circumstances:

1) when Nominal GDP is constant but there is deflation in the economy.

2) Real GDP may still be higher when rate of growth of nominal GDP would be higher than the inflation rate, such that overall real GDP record a higher value in current year vis-a-vis previous year.

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Price may have risen too. But rate of growth of nominal GDP would be higher than the inflation rate such that, real GDP record a higher value vis-a-vis previous year.