An increase in the value of nominal GDP over time:
A) is always due to an increase in prices.
B) is always due to an increase in the production of goods and services.
C) may be due to an increase in prices, in the production of goods and services, or both.
D) may be due to a decrease in prices, in the production of goods and services, or both.

Question

Quizplus · Accepted Answer

An increase in the value of nominal GDP can occur due to an increase in prices, an increase in the production of goods and services, or a combination of both factors. It is important to distinguish between nominal GDP and real GDP, as the latter adjusts for changes in prices and provides a more accurate measure of a country's economic growth.

An Increase in the Value of Nominal GDP Over Time