Nominal GDP increases
A) only if the productivity of resources increases.
B) only if prices increase.
C) if either prices and/or total production increase.
D) only if total production increases.
E) only if depreciation decreases.

Question

Quizplus · Accepted Answer

Nominal GDP can increase due to an increase in prices (inflation) or an increase in the total production/output of an economy. It reflects the current market prices of goods and services produced, thus capturing changes in both price levels and quantities.

Nominal GDP Increases