If a country's nominal GDP increases but its real GDP remains unchanged, what is the likely cause of this situation?

When a country's nominal GDP increases but its real GDP stays the same, it usually means that prices have gone up, leading to inflation. Nominal GDP measures the total value of goods and services at current prices, while real GDP adjusts for changes in price levels, giving a clearer picture of economic growth. So, if people are paying more for the same products without an increase in production, nominal GDP can rise without a real increase in economic activity. For example, if a loaf of bread costs $2 one year and $2. 50 the next year, even if the same number of loaves are sold, the nominal GDP increases due to the higher price, but the real GDP remains unchanged because the actual output of bread hasn’t increased.