The Ratio of Nominal Economic Output to Real Economic Output

question 154

Multiple Choice

The ratio of nominal economic output to real economic output multiplied by 100 is the:

• A) consumer price index.
• B) GDP deflator.
• C) producer price index.
• D) exchange rate.

---

Definitions:

Machines

Mechanical or electrical devices that perform specific tasks or assist in completing work more efficiently.

Labor

Labor represents the human effort, both physical and mental, used in the production of goods and services.

Total Costs

The total of all costs associated with the production of goods or services, encompassing both fixed and variable expenses.

Conditional Labor Demand

The demand for labor by employers, which is contingent upon certain conditions, such as wage rates or economic environment.