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If prices go down, doesn't that mean GDP also goes down assuming that that the quantity of items purchased doesn't change?
by adverbly 1y ago
If prices go down, doesn't that mean GDP also goes down assuming that that the quantity of items purchased doesn't change?
- victorbjorklund 1y agoPrices affect peoples and companies buying decision. If an Iphone is 1000 dollars instead of 4000 dollars more Iphones will be sold.
- margalabargala 1y agoSure, but 4x more?
- selectodude 1y agoNot really. if consumption stayed the same while prices changed, real GDP would not change. That would just be deflation.