If nominal GDP rose in 2008, we can conclude that:
A) production rose in 2008.
B) the price level rose in 2008.
C) either production or the price level, or both, rose in 2008.
D) neither production nor the price level rose in 2008.

Question

Quizplus · Accepted Answer

Nominal GDP measures the monetary value of all final goods and services produced in an economy in a given period of time. Therefore, an increase in nominal GDP could be due to either an increase in production or an increase in the price level, or both. Without additional information, it is not possible to determine with certainty which of these factors contributed to the increase in nominal GDP.

If Nominal GDP Rose in 2008, We Can Conclude That