When We Calculate the Percent Change in the Real GDP

question 82

Multiple Choice

When we calculate the percent change in the real GDP between 2008 and 2009, we

• A) subtract 2008 real GDP from 2009 real GDP, and express the difference as a proportion of 2008 real GDP.
• B) take the average of 2008 and 2009 real GDP.
• C) divide 2008 real GDP with 2009 real GDP.
• D) subtract 2008 real GDP from 2009 real GDP.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Production Functions

Mathematical relationships expressing the output of a firm, an industry, or an entire economy as a function of inputs.

Industry Supply Curve

A graph showing the relationship between the price of a good and the total output of the industry that produces it.

Equilibrium Price

The price at which the supply of a good matches its demand in the market, leading to a stable situation where everything supplied is sold.