(Answered) What would cause real GDP to increase without a change in nominal GDP?What would cause real GDP to…

➤ How do the GDP deflator and CPI relate to this scenario?
The GDP deflator converts nominal GDP into real GDP by measuring prices for all domestically produced goods and services. A falling deflator raises real GDP when nominal stays fixed. The CPI covers consumer prices only and may move differently. Comparing both helps identify whether price shifts or output changes drive the gap.