Nominal GDP increases from year 1 to year 2. Therefore: a.) We produced more goods and services in year 1

b.) We produced more goods and services in year 2

c.) It is not possible to determine in which year we produced a greater quantity of goods and services.

C

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Nominal GDP is GDP calculated using current year prices.

If nominal GDP increases, it can be as a result of an increase in price level or an increase in output

for example,

In economy A, price in year 1 is 10 and price in year 2 is 20. Output in both years is 20

Nominal GDP in year 1 = (10 X 20) = 200

Nominal GDP in year 2 = (20 X 20) = 400

It can be seen that nominal GDP increased even though output did not increase

Assume that in economy B, price in year 1 and 2 is 10. Output in year 1 is 100 and output in year 2 is 200

Nominal GDP in year 1 = (10 x 100) = 1000

Nominal GDP in year 2 =  (10 x 200) = 2000

Increase in nominal GDP in this economy is as a result of an increase in output

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