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If nominal GDP increases by 10 percent from one year to the next but real GDP is unchanged, then: A) Factor costs have increased by
If nominal GDP increases by 10 percent from one year to the next but real GDP is unchanged, then:
- A) Factor costs have increased by 10 percent but net indirect tax rates have not changed.
- B) Factor costs have not changed but net indirect tax rates have increased by 10 percent.
- C) The GDP deflator has increased by 10 percent.
- D) All the above.
Apparently the answer is option D but how come? could you explain it please?
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