Which of the Following Could Cause Nominal GDP to Increase

question 66

Multiple Choice

Which of the following could cause nominal GDP to increase next year,but real GDP to decrease?

• A)The price level rises and the quantity of final goods and services produced rises.
• B)The price level rises and the quantity of final goods and services produced falls.
• C)The price level falls and the quantity of final goods and services produced rises.
• D)The price level falls and the quantity of final goods and services produced falls.

---

Definitions:

Categorical Grant

A type of federal aid given to state and local governments with strict limitations on how the money can be spent, usually tied to specific programs or projects.

Categorical Grants

Federal grants that can only be used for specific purposes and usually require that the state or local government contribute money and meet certain conditions.

Federal Subsidies

Financial support provided by the federal government to individuals, businesses, or other governmental units in support of activities deemed beneficial to the public interest.

Popular Democrats

Members of the Democratic Party known for their widespread appeal among the general populace and base supporters.