The nominal GDP of Australia has increased by 3.6% this year. We can conclude that _______.a. either production has risen or prices have risen or both have risen.production has risen and prices remain constant.prices have risen and production remains constant.production have risen and prices have fallen.production has fallen and prices have risen.
Question
The nominal GDP of Australia has increased by 3.6% this year. We can conclude that _______.a. either production has risen or prices have risen or both have risen.production has risen and prices remain constant.prices have risen and production remains constant.production have risen and prices have fallen.production has fallen and prices have risen.
Solution
We can conclude that either production has risen or prices have risen or both have risen. This is because the nominal GDP, which is not adjusted for inflation, can increase due to an increase in production, an increase in prices, or both. The other options cannot be concluded solely from the information given about the increase in nominal GDP.
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