Question

Why might GDP at current prices increase?

• A. Because of increase in price or quantity of goods and services
• B. Only because prices rise
• C. Only because quantity of goods produced increases
• D. Only because currency value changes

Answer 1

Answer:

A. Because of increase in price or quantity of goods and services

• GDP at current price (nominal GDP) can rise due to increases either in quantity produced or in prices, so it does not show real economic growth