If nominal GDP rises from $550 billion to $600 billion,then
A)The economy has definitely experienced economic growth.
B)The economy has definitely not experienced economic growth.
C)The economy has definitely experienced inflation.
D)It is not possible to determine if the economy has experienced economic growth or inflation.

Question

Quizplus · Accepted Answer

The increase in nominal GDP could be due to an increase in the overall price level (inflation) or an increase in the quantity of goods and services produced (economic growth), or a combination of both. Without more information, such as changes in the price level or real GDP, it's impossible to determine the exact cause of the increase in nominal GDP.

If Nominal GDP Rises from $550 Billion to $600 Billion,then