An Increase in Nominal GDP Could Result from an Increase

question 48

Multiple Choice

An increase in nominal GDP could result from an increase in i.production.
Ii) prices.
Iii) subsidies.

• A)i only
• B)ii only
• C)i and iii
• D)i and ii
• E)i,ii and iii

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Definitions:

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Maximize Profits

The process by which businesses aim to achieve the highest possible profit through revenue maximization and/or cost minimization strategies.

Minimize Losses

Minimize losses refers to strategies or actions taken by businesses and investors to reduce financial losses or the negative impact of less successful investments.

Marginal Cost (MC)

The cost of producing one additional unit of output.