If real GDP increased and GDP decreased during the same year,we could conclude that

A) an inflation occurred during the year.
B) the unemployment rate increased during the year.
C) the general price level fell during the year.
D) net exports were negative.
E) All of the choices are correct.

If real GDP increased while nominal GDP (simply referred to as GDP in the question) decreased, it indicates that the output of goods and services increased when measured in constant prices, but the value of goods and services measured in current prices fell. This scenario suggests that the general price level fell during the year, which is a deflationary condition, not inflation. This does not directly relate to the unemployment rate, net exports, or imply that all choices are correct.