If nominal GDP increases from one year to the next,then
A)prices and production must both have increased.
B)prices must have increased.
C)production must have increased.
D)prices and production must both have decreased.
E)production could have increased,decreased or stayed the same.

Question

Quizplus · Accepted Answer

Nominal GDP can increase due to an increase in prices, production, or both. Therefore, production could have increased, decreased, or stayed the same.

If Nominal GDP Increases from One Year to the Next,then