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

Question

Quizplus · Accepted Answer

An increase in nominal GDP can be caused by an increase in production, which would increase the output of goods and services and therefore the value of GDP. An increase in prices would also contribute to an increase in nominal GDP as the same goods and services will be valued at a higher price. Taxes and subsidies, on the other hand, may affect real GDP by impacting the production of goods and services, but they do not directly impact the dollar value of GDP.

An Increase in Nominal GDP Could Result from an Increase