If a Small Country Has Current Nominal GDP of $30

question 120

Multiple Choice

If a small country has current nominal GDP of $30 billion and the GDP deflator is 50, what is its real GDP?

• A) $15 billion
• B) $30 billion
• C) $60 billion
• D) $150 billion

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Long-Run Equilibrium

A state in a market where all firms are making zero economic profit, input factors are fully adjustable, and no firm has an incentive to enter or exit the market.

Average Total Cost Curve

A graphical representation showing how the average cost per unit of output varies with the level of output.

Profit-Maximizing Quantity

The quantity of output that an entity can produce and sell at the highest profit, considering its costs and market demand.