If the Prices of All Goods and Services Rise During

question 179

Multiple Choice

If the prices of all goods and services rise during the year,

• A)real GDP may fall.
• B)nominal GDP must rise.
• C)nominal GDP may increase.
• D)real GDP must rise.

---

Definitions:

Marginal Utility

The heightened enjoyment or value gained from the consumption of one more unit of a good or service.

Health Cost

The expenses associated with healthcare services, including prevention, treatment, and rehabilitation.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in the per-unit cost of production as the size of the operation grows.

Product Variety

Refers to the assortment of different goods and services that a firm offers to its customers, highlighting the diversity within a product line.