In Recent History, Real GDP Has Risen Less Rapidly Than

question 123

Multiple Choice

In recent history, real GDP has risen less rapidly than nominal GDP. This is because

• A)the general price level fell.
• B)capital increased.
• C)the goal of zero population growth has been reached.
• D)the general price level rose.
• E)the level of population rose.

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Definitions:

Consumer Surplus

The gap in the total funds consumers are willing and financially prepared to allocate for a good or service, versus the funds actually allocated.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive when the good is sold.

Producer Surplus

The gap highlighting the difference between the initial asking price by sellers for goods or services and the ultimately received price.

Specific Tax

A tax that is levied as a fixed amount per unit on a particular good or service.