An increase in nominal GDP could result from an increase in
i. production.
ii. prices.
iii. subsidies.
A)i and ii
B)ii only
C)i and iii
D)i only
E)i, ii, and iii

Question

Quizplus · Accepted Answer

An increase in nominal GDP can result from an increase in production (i) as more goods and services are produced, and from an increase in prices (ii) as the value of goods and services rises. Subsidies (iii) do not directly increase nominal GDP.

An Increase in Nominal GDP Could Result from an Increase