Nominal GDP increases
A)only if total production increases.
B)only if prices increase.
C)if either prices and/or total production increase.
D)only if the productivity of resources increase.
E)only if depreciation decreases.

Question

Quizplus · Accepted Answer

Nominal GDP can increase if either prices or total production increases. It does not necessarily require an increase in both. For example, if prices increase but total production remains constant, nominal GDP would still increase. Conversely, if total production increases but prices remain constant, nominal GDP would also increase.

Nominal GDP Increases