What Would Explain a Rise in Nominal GDP but a Drop

question 114

Multiple Choice

What would explain a rise in nominal GDP but a drop in real GDP during the same period?

• A)a rise in prices and a fall in production.
• B)a fall in prices and a rise in production.
• C)a rise in prices and a rise in production.
• D)a fall in prices and a fall in production.
• E)constant prices and a fall in production.

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Definitions:

Units

The standard measurement or quantity in which a product, service, or statistic is counted or expressed.

Marginal Cost

The cost of producing one additional unit of a good or service.

Total Costs

The complete sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.

Output

The total amount of goods or services produced by a company, individual, or process within a given time frame.