Which of the following will increase the nomina... - WAEC Economics 2014 Question
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
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.
Please share this, thanks:
Add your answer
No responses