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Real output growth will be higher than nominal output growth whenever: There is positive inflation. There...

Real output growth will be higher than nominal output growth whenever:

There is positive inflation.

There is deflation.

There is hyperinflation.

There is stagflation.
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Answer #1

Roughly, Real Growth = nominal growth - inflation

Hyperinflation is the inflation beyond controllable limits and in this case real growth would be less than nominal growth.

If there is positive inflation then real growth will be less than nominal growth according to the equation above

stagflation occurs when there is simultaneous increase of inflation as a result of which the growth will be statement and real output growth will be less than nominal growth year also and that is the reason why

(a,c,d) are wrong

however if there is deflation which means negative inflation then according to the equation the real growth would be greater than the nominal growth and that is the reason why

(b) is the answer to this question

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