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After a revolution, the economy of Zurka has changed significantly. Compared to the previous year, productivity...

After a revolution, the economy of Zurka has changed significantly. Compared to the previous year, productivity has fallen by half while prices have doubled. Which of the following statements is most accurate:

There is no effect on the well-being of the economy because the changes cancel each other out

Declining nominal GDP suggests the revolution has harmed the economy

Rising real GDP suggests the economy is still growing healthily

Declining real GDP suggests the revolution has harmed the economy

Rising nominal GDP suggests the economy is still growing healthily

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Answer #1

D) Declining real GDP suggests the revolution has harmed the Economy.

Because due to revolution productivity is decreases while price is Increases.

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