Table 5-4 shows price and output data for an economy. Assume that 1994 is the base period. Use the table to answer questions .
Table 5-4

-Refer to Table 5-4. In _____, nominal GDP increased over the previous year due to an increase in prices and not due to a change in output.

Question

Table 5-4 shows price and output data for an economy. Assume that 1994 is the base period. Use the table to answer questions .
Table 5-4
 
-Refer to Table 5-4. In _____, nominal GDP increased over the previous year due to an increase in prices and not due to a change in output.

Quizplus · Accepted Answer

Nominal GDP can increase due to higher prices or increased output. The question specifies an increase due to prices alone, which implies that real GDP (output) did not change. In 1999, nominal GDP increased solely due to price changes, not output changes.

Table 5-4 Shows Price and Output Data for an Economy