CPI/GDP question help, plox

Appears our teachers use the same questions as the earlier anon who posted an economics question on AS curve. Anyway:

When CPI decreases what happens to real GDP?



 a. Increases

 b. Decreases

 c. Stays the same

 d. CPI doesn't impact real GDP


I want to say A since I was pretty sure they have a negative relationship, but I've seen several different answers on Yahoo answers, where gurl gits praegnant. Help plox?

1. Economics isn't a science.
2. > plox
Please use proper english.
3. Do your own homework.

I like the nickname for economics:  The Dismal Science.

I have no idea about such things, but maybe Google image search for cpi verus dgp gives something you can use:

http://images.google.com/images?sourceid=navclient&ie=UTF-8&rls=CNDB,CNDB:2010-12,CNDB:en&q=cpi+versus+gdp

Think it is D - CPI is used to adjust for inflationary/deflationary pressures in order to allow you to calculate ~REAL~ GDP.

I think.

4 sounds right. If there would be "nominal GDP" written, then GDP would decrease because goods get more expensive (or money is less valuable) and thus, you cannot sell the same amount. Guess why America tries to increase inflation: to produce cheaper.

Do they honestly ask multiple answer questions in American schools? Seriously?

>>6
You are only allowed to choose one of them