An increase in nominal GDP could result from an increase in i.production.
Ii)prices.
Iii)subsidies.
A)i only
B)ii only
C)i and iii
D)i and ii
E)i,ii and iii

Question

Quizplus · Accepted Answer

An increase in nominal GDP could result from an increase in production (i) because more goods and services are being produced, and an increase in prices (ii) because the same amount of goods and services are being produced, but at a higher price. Subsidies (iii) can also contribute to an increase in production, but it is not the only factor. Therefore, the correct answer is D because both i and ii can contribute to an increase in nominal GDP.

An Increase in Nominal GDP Could Result from an Increase