Nominal Gross Domestic Product

question 111

Multiple Choice

Nominal gross domestic product

• A)is not affected by the level of inflation.
• B)changes only when there is a change in output.
• C)changes only when there is a change in the price level.
• D)can change when there is a change in either output or the price level.

---

Definitions:

Maximum

The highest attainable level or value in a given set of data or a particular function.

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products, with some control over pricing but in a competitive environment.

Price-Making Ability

The capacity of a firm or entity to influence the price of goods or services in the market rather than accepting the market price as given.

Marginal Cost

The outlay required to produce an additional unit of a product or service.