If the Nominal Gross Domestic Product (GDP)for the Year 2000

question 148

Multiple Choice

If the nominal gross domestic product (GDP) for the year 2000 was $6.2 trillion and the price index was 200,the real gross domestic product (GDP) for 2000 was _____.

• A)$3.1 trillion
• B)$6.2 trillion
• C)$12.4 trillion
• D)$18.6 trillion
• E)$24.3 trillion

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Definitions:

Discretionary Fiscal Policy

Fiscal measures, such as government spending and taxation, actively applied by a government to influence the economy, especially to counteract recession or control inflation.

Inflation

The rate at which the widespread price level of goods and services rises, impairing the purchasing power.

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, or other entities to finance government spending and various public expenditures.

Government Spending

Government spending includes all expenditures by government bodies and institutions, ranging from infrastructure investment to public services and welfare benefits.