Refer to the Information Provided in Table 21

question 192

Multiple Choice

Refer to the information provided in Table 21.10 below to answer the question(s) that follow.
Table 21.10
-Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3 is

• A) $144.
• B) $160.
• C) $180.
• D) $212.

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Definitions:

Short Run

A period of time in which at least one input in the production process is fixed, influencing decisions made by firms about production levels.

Plant Capacity

Plant capacity refers to the maximum output a manufacturing or production facility can achieve under normal conditions within a given time period.

Fixed Input

A resource or factor of production whose quantity remains constant regardless of the level of output or activity.

Short Run

A period in economics where at least one input is fixed and cannot be changed, limiting the ability to increase production.