An Increase in Nominal GDP Could Result from an Increase

question 88

Multiple Choice

An increase in nominal GDP could result from an increase in
i. production.
ii. prices.
iii. subsidies.

• A)i and ii
• B)ii only
• C)i and iii
• D)i only
• E)i, ii, and iii

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Definitions:

NICs

Newly Industrialized Countries, nations that have recently experienced rapid industrial growth and show signs of moving from a mainly agricultural to an industry and manufacturing-based economy.

Net National Savings Rate

A measure of the total savings of an economy after taking into account depreciation, expressed as a percentage of Gross National Product (GNP).

Industrial Nations

Countries that are highly developed and have a major portion of their economy based on manufacturing and industry.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.