<p>It is indeterminate without any further information. You would have to know by how much did real output and inflation change to determine new nominal GDP level.</p>

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2022-11-09T10:32:32.363Z
2022-11-09T10:32:32.363Z
1muflon1
<p>A decrease in SRAS would decrease real GDP, as producers would stop producing as much for whatever reason. This would also cause inflation, though. So what net effect does this have on nominal GDP? Is it indeterminate?</p>

<macroeconomics>
If SRAS decreases, does nominal GDP increase or decrease?
user42504
# If SRAS decreases, does nominal GDP increase or decrease?

(Asked by: username_0 on 2022-11-09)

A decrease in SRAS would decrease real GDP, as producers would stop producing as much for whatever reason. This would also cause inflation, though. So what net effect does this have on nominal GDP? Is it indeterminate?

**Tags:** macroeconomics


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## 1 answers

### Answer by username_1 on 2022-11-09. Score: 0

It is indeterminate without any further information. You would have to know by how much did real output and inflation change to determine new nominal GDP level.


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