A researcher finds that for an economy, the nominal GDP in the year 2012 equals the nominal GDP in the year 2013. He also finds that the output of the economy has been the same over the two years. A situation like this is possible only if:

A) the annual inflation rate in the economy is negative.
B) the annual interest rate in the economy is negative.
C) the annual interest rate in the economy is zero percent.
D) the annual inflation rate in the economy is zero percent.

ANSWER:

D