Final answer:
Nominal GDP in South Africa increased due to higher prices while the quantity of goods and services remained the same, leading to a rise in nominal GDP but leaving real GDP unchanged since the actual production levels did not change.
Step-by-step explanation:
When examining the change in value of goods and services produced by South Africa from R250 million in 2021 to R350 million in 2022 while the quantity of goods and services produced remained the same, it is clear that the correct statement would be (c) nominal GDP increased and real GDP is unchanged.
The reasoning for this is based on the definitions of both nominal and real GDP. Nominal GDP is defined as the quantity of every good or service produced multiplied by the price at which it was sold, summed up for all goods and services. It does not adjust for changes in price levels or inflation. Therefore, if the value increases due to price increases but the quantity of goods and services remains the same, the nominal GDP would reflect this increase in value. On the other hand, real GDP is adjusted for inflation and considers only the quantity of goods and services produced. Since the actual production or quantity did not change from 2021 to 2022, the real GDP would remain unchanged. To adjust nominal GDP for inflation, economists use tools such as the GDP deflator.