In Determining Real GDP Economists Adjust the Nominal GDP by Using

question 133

Multiple Choice

In determining real GDP economists adjust the nominal GDP by using the:

• A)national productivity index.
• B)wholesale (producer) price index.
• C)GDP price index.
• D)consumer price index.

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs (like labor and capital) and the maximum output that can be produced with those inputs.

Input

Resources used in the production process to create goods or services.

Inputs

Resources such as labor, materials, and capital used in the process of production.

Output

The quantity of goods or services produced by a firm, industry, or economic system.