What Does Real GDP Measure

question 49

Multiple Choice

What does real GDP measure?

• A)the constant-dollar value of the potential output of the nation's economy over the period of one year
• B)the constant-dollar value of total output produced by the nation's economy over the period of one year
• C)the fluctuations of national income around its long-term trend
• D)the annual growth rate of real national income
• E)the long-term trend in total output produced by the nation's economy

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Definitions:

Feasible Region

Within optimization challenges, the collection of all feasible points that meet the criteria of the problem.

Linear Programming

A mathematical methodology for determining the best outcome in a given mathematical model for some list of requirements represented as linear relationships.

Constrained Resources

Resources in limited supply that restrict the ability of an organization to produce goods or services or achieve desired outcomes.

Linear Programming

A mathematical modeling technique used for optimization of a linear objective function, subject to linear equality and inequality constraints.