Nominal GDP can change
A) only if prices change.
B) only if the quantities of goods and services change.
C) only if prices increase.
D) if either prices or the quantities of goods and services change.
E) only if prices and the quantities of the goods and services change.
D
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In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because:
A. the Fed held interest rates constant. B. the federal government balanced its budget. C. the U.S. personal savings rate rose. D. productivity (and thus aggregate supply) grew faster than previously.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher