When the GDP deflator is equal to 125 nominal GDP is $ 140 bn., and when the deflator is equal to 160 nominal GDP is $ 120 bn. This increase in the price level means that:

real GDP rises by $ 17 bn.

real GDP falls by $ 25 bn.

none of the other answers is correct

real GDP falls by $ 37 bn.

real GDP rises by $ 14.75 bn.