Essentials of Economics 7th Edition by Gregory Mankiw

Exercise 7

If all quantities produced rise by 10 percent and all prices fall by 10 percent, which of the following occurs?
A) Real GDP rises by 10 percent, while nominal GDP falls by 10 percent.
B) Real GDP rises by 10 percent, while nominal GDP is unchanged.
C) Real GDP is unchanged, while nominal GDP rises by 10 percent.
D) Real GDP is unchanged, while nominal GDP falls by 10 percent.