If Real GDP Rises from $700 Billion to $704 Billion,the

question 3

Multiple Choice

If real GDP rises from $700 billion to $704 billion,the economic growth rate is

• A)($704 billion/$700 billion)/100.
• B)($704 billion - $700 billion)/$700*100.
• C)$700 billion/$704 billion.
• D)($704 billion - $700 billion)/$704 billion.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.

Horizontal Merger

The combination of two or more firms competing in the same market with the same good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often as direct competitors.

Supplier-Customer Relationships

This term refers to the interactions and dealings between a business that provides products or services and its buyers.