Which of the following has little impact on nominal GDP?
A) an increase in aggregate demand
B) a decrease in aggregate demand
C) an increase in inflation with no change in output
D) a reduction in short-run aggregate supply

Question

Quizplus · Accepted Answer

A reduction in short-run aggregate supply typically affects real GDP and price levels but may not directly impact nominal GDP, which is the market value of all final goods and services produced in a country in a given period, measured in current prices.

Which of the Following Has Little Impact on Nominal GDP