If prices go down, doesn't that mean GDP also goes down assuming that that the q... | Hacker News

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		adverbly 9 months ago \| parent \| context \| favorite \| on: U.S. Economy Contracts at 0.3% Rate in First Quart... If prices go down, doesn't that mean GDP also goes down assuming that that the quantity of items purchased doesn't change?

victorbjorklund 9 months ago | [–]

Prices affect peoples and companies buying decision. If an Iphone is 1000 dollars instead of 4000 dollars more Iphones will be sold.

margalabargala 9 months ago | | [–]

Sure, but 4x more?

selectodude 9 months ago | [–]

Not really. if consumption stayed the same while prices changed, real GDP would not change. That would just be deflation.

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