In Periods of Generally Rising Prices

question 93

Multiple Choice

In periods of generally rising prices,

• A)real GDP will grow faster than nominal GDP.
• B)nominal GDP will grow slower than real GDP.
• C)real GDP will grow slower than nominal GDP.
• D)real GDP and nominal GDP will grow at the same rate.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Third-Degree Price Discrimination

Practice of dividing consumers into two or more groups.

Price Elasticities

Measures of how the quantity demanded or supplied of a good responds to a change in its price.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.