If Both the Production of Goods and Services Increase and Prices

Multiple Choice

If both the production of goods and services increase and prices rise, then the change in nominal GDP

A) definitely overstates the change in production.
B) either understates or might accurately reflect the change in production.
C) definitely understates the change in production.
D) definitely accurately reflect the change in production.
E) More information is needed to determine how the change in nominal GDP compares to the change in production.