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Exhibit: Price and Output Data for an Economy

-(Exhibit: Price and Output Data for an Economy) Assume that 1994 is the base period. In _____, nominal GDP increased over the previous year due to an increase in output and not due to a change in prices.

Question

Use the following to answer questions .
Exhibit: Price and Output Data for an Economy
 
-(Exhibit: Price and Output Data for an Economy) Assume that 1994 is the base period. In _____, nominal GDP increased over the previous year due to an increase in output and not due to a change in prices.

Quizplus · Accepted Answer

In 1996, the real GDP increased but the price level stayed the same as the base year, indicating that the increase in nominal GDP was due to an increase in output rather than prices. In all other years, there were changes in both output and prices that contributed to changes in nominal GDP.

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