Suppose nominal GDP increased by 1.5%. Over that year, the GDP deflator decreased by 1.0%. From this information (and using our Aggregate Supply and Demand framework for analysis), we infer that:
a. real GDP increased, and we had an increase in Aggregate Demand.
b. real GDP increased, and we had a decrease in Aggregate Demand.
c. real GDP decreased, and we had an increase in Aggregate Supply.
d. real GDP increased, and we had an increase in Aggregate Supply.
e. real GDP decreased, and we had a decrease in Aggregate Demand.