Question on: WAEC Economics - 2014
Which of the following will increase the nominal value of national income?
A
High rate of inflation
B
increase in the value of money
C
Increase in import
D
High rate of subsistence production
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Correct Option: D
'Nominal' value of national income can be found by multiplying the quantity of output by the retail (market) price of this output. INcrease in the level of production, will increase the norminal value of national income which is the monetary value of outputs. But If demand increases at an unsustainable rate, resources become increasingly scarce, and firms will raise prices.
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