A Country Reported a Nominal GDP of $85 Billion in 2007

Multiple Choice

A country reported a nominal GDP of $85 billion in 2007 and $100 billion in 2006, and reported a GDP deflator of 100 in 2007 and 105 in 2006. What happened to real output and prices from 2006 to 2007?

A) Real output and prices both rose.
B) Real output rose and prices fell.
C) Real output and prices both fell.
D) Real output fell and prices rose.