Question

. If nominal gross domestic product (GDP) is rising and production is also rising, then it...

. If nominal gross domestic product (GDP) is rising and production is also rising, then it must be the case that

a. fewer goods and services are being produced.

b. prices must be lower on average.

c. real GDP increases.

d. prices are rising at a greater rate than production is rising.

e. production is rising at a greater rate than prices are rising.

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Homework Answers

Answer #1

GDP is the monetary value of all goods and services produced in an economy over a period of time say one year. In GDP we didn't include the net factor income earned from abroad. Nominal GDP is the measurement of economic production in an econnomy and also includes the current price of goods and services in calculation.

The correct option is (d).

prices are rising at a greater rate than production is rising.

The case is when nominal GDP is rising and the production is also rising than the prices are rising greater than the production is rising.

Hope you got the answer.

Kindly comment for further explanation.

Thanks ?

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