The Price of a Gallon of Gasoline at the Pump

Multiple Choice

The price of a gallon of gasoline at the pump increased by 5 percent at the same time that the inflation rate was also 5 percent. The nominal price of gasoline ________, and the real price of gasoline ________.

A) did not change; increased
B) did not change; did not change
C) increased; did not change
D) increased; decreased