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

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods and services produced by their prices. Therefore, an increase in nominal GDP could be due to an increase in production or an increase in prices, or a combination of both.

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