If the GDP Deflator in 2019 Equals 1

question 51

Multiple Choice

If the GDP deflator in 2019 equals 1.25 and nominal GDP in 2019 equals $15 trillion, what is the value of real GDP in 2019?

• A)$12 trillion
• B)$12.5 trillion
• C)$15 trillion
• D)$18.75 trillion

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Definitions:

Labor

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

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unattainable, leading to a mismatch between supply and demand.

Empirical Studies

Research or studies based on actual and observable evidence, typically involving systematic observation or experimentation.

Unionized Firms

Companies or organizations where the workforce is represented by a union, which negotiates wages, working conditions, and other employment terms.