Table 23-5 The Country of Caspir Produces Only Cereal and Milk. Quantities

question 450

Multiple Choice

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
-Refer to Table 23-5. In 2016, this country's

• A)real GDP was $880, and the GDP deflator was 111.4.
• B)real GDP was $780, and the GDP deflator was 88.6.
• C)real GDP was $880, and the GDP deflator was 112.8.
• D)real GDP was $780, and the GDP deflator was 112.8.

---

Definitions:

Real Output

The production of goods and services in an economy adjusted for inflation, allowing for comparison of economic productivity over different time periods by reflecting the actual volume of production.

Price Levels

The general level of prices for goods and services in an economy at a specific point in time.

Aggregate Supply Curve

The aggregate supply curve represents the total output of goods and services that businesses in an economy are willing to produce at different price levels.

Cost of Living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.