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 ii
D)i and iii
E)i,ii,and iii

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods and services produced in an economy with their prices. Therefore, an increase in production (i) and prices (ii) would both lead to an increase in nominal GDP. Subsidies (iii) may also lead to an increase in production, but it is not a direct factor affecting nominal GDP.

An Increase in Nominal GDP Could Result from an Increase