Which of the Following Calculations Will Yield the Correct Measure

question 39

Multiple Choice

Which of the following calculations will yield the correct measure of real GDP?

• A)divide nominal GDP by the consumer price index
• B)divide the GDP deflator by the consumer price index
• C)multiply nominal GDP by the consumer price index
• D)multiply nominal GDP by the GDP deflator
• E) none of the above

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Definitions:

Deadweight Loss

The diminished economic effectiveness arising from a failure to achieve or the inability to achieve equilibrium for a product or service.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive, typically due to market price.

Market Equilibrium

A state where market supply meets market demand, leading to stable prices and quantities.