The Real GDP of Country X Doubled in 20 Years

question 4

Multiple Choice

The Real GDP of country X doubled in 20 years.It follows that the annual growth rate in country X during this time period was

• A) 4.0 percent.
• B) 5.0 percent.
• C) 2.8 percent.
• D) 3.5 percent.

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Definitions:

Total Revenue

The sum total of revenue a business earns from its sales activities and service provisions during a particular period.

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in price.

Elastic Demand

Reflects how the quantity demanded of a good or service changes in response to a change in price; high elasticity indicates demand is highly sensitive to price changes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to buy.