Historically,nominal GDP Has Increased Faster Than Real GDP Because

question 64

Multiple Choice

Historically,nominal GDP has increased faster than real GDP because

• A)the general price level has fallen.
• B)improvements in product quality have not been reflected in prices.
• C)exports have risen more rapidly than imports.
• D)imports have risen more rapidly than exports.
• E)the general price level has increased.

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Definitions:

Market

A social or economic system where goods and services are exchanged between buyers and sellers using money or barter.

First-Degree (Perfect) Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the consumer is willing to pay.

Profit-Maximizing Monopolist

A monopolist's strategy of setting a level of production and price that maximizes its profits.

Inelastic

A characteristic of goods whose demand or supply is not significantly altered when the price changes.