Quantity Demanded Is a Flow Variable, Which Means That It

question 8

Multiple Choice

Quantity demanded is a flow variable, which means that it must be expressed

• A)in units of the good per week.
• B)in units of the good per year.
• C)as number of units per period of time.
• D)in units of the good per day.
• E)as so much at a specific moment in time.

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Definitions:

Real GDP

measures the value of all final goods and services produced within a country in a given period, adjusted for inflation.

Nominal GDP

The aggregate value of all end products and services created inside a country during a specific time, calculated in present-day prices.

Nominal Cost

The price of a good or service without adjustment for inflation, representing the current market price.

Potential Output

Potential output refers to the total amount of goods and services an economy can produce when it is operating at full capacity and efficiency, without causing inflation.