Suppose the Dollar Value of GDP Increased Approximately 2 Percent

question 153

Multiple Choice

Suppose the dollar value of GDP increased approximately 2 percent between October 2007 and August 2008,but real GDP fell 1 percent during the period.Which of the following best explains these data?

• A)The real capacity of the economy increased more rapidly than money output during the period.
• B)In the international sector,net exports fell by approximately 3 percent during the period.
• C)The money supply decreased by approximately 3 percent during the period.
• D)Prices increased approximately 3 percent during period.

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Definitions:

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of the strategies chosen by other players in a game.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Cartel

An agreement among competing firms to control prices or production in a market, often to maximize profits by minimizing competition.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of what strategies other players choose.