Why can nominal GDP rise even when real production changes little? » HSC U.S. Economy MCQ » MCQ Academy - English

U.S. Economy

Why can nominal GDP rise even when real production changes little?

Nominal GDP ignores prices.
Population density must fall.
Prices may rise.
The coastline becomes longer.

Nominal GDP ignores prices.
Population density must fall.
Prices may rise.
The coastline becomes longer.

Note

Prices may rise. is correct. Nominal GDP can rise because of both greater real production and higher prices.

Tags: California Economy, California Facts, GDP and Economic Measures

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