An increase in nominal GDP
A) is absolute real economic growth.
B) is per capita real economic growth.
C) is both per capita and absolute real economic growth.
D) does not necessarily mean either absolute or per capita real economic growth.

Question

Quizplus · Accepted Answer

Nominal GDP is measured in current prices and does not take into account inflation. Therefore, an increase in nominal GDP may not necessarily indicate real economic growth either on an absolute or per capita basis, as it could be due to inflation or population growth.

An Increase in Nominal GDP