The Percentage Increase in a Price Index from One Year

question 25

Multiple Choice

The percentage increase in a price index from one year to the next is the

• A) real GDP growth rate.
• B) inflation rate.
• C) GDP inflator.
• D) None of the answers is correct.

---

Definitions:

Renting

The act of paying for the use of something, typically property, land, or a vehicle, owned by another person or company, over a specific period.

Additional Cost

Expenses that are not previously planned or accounted for, often arising unexpectedly in the course of an action or project.

Conditional Factor Demand Function

Represents the quantity of an input demanded at each level of output, prices of inputs, and technology, given the firm's optimization behavior.

Optimal Factor Choice

A decision-making process in which a firm determines the most efficient combination of factors of production (labor, capital, etc.) to maximize output or minimize costs.