If nominal GDP rises we can say that
A)production has risen and prices remain constant.
B)prices have risen and production remains constant.
C)production has risen or prices have risen or both have risen.
D)production has fallen and prices have risen.

Question

Quizplus · Accepted Answer

Nominal GDP includes both the changes in the level of production and the changes in the level of prices. Therefore, if nominal GDP rises, it could be due to an increase in production, an increase in prices, or both. It is impossible to determine which of these factors is responsible for the change in nominal GDP without further information.

If Nominal GDP Rises We Can Say That