If nominal GDP increases from one year to the next, _____ must have risen.
A) prices
B) real GDP
C) prices and real GDP
D) real GDP or prices or both

Name: If nominal GDP increases from one year to the next, _____ must have risen. A) prices B) real GDP C) prices and real GDP D) real GDP or prices or both
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Question

Quizplus · Accepted Answer

Nominal GDP can increase due to both an increase in prices and an increase in real GDP. Therefore, real GDP or prices or both must have risen for nominal GDP to increase.

If Nominal GDP Increases from One Year to the Next