If Real GDP in 2011 (Using 2002 Prices)is Lower Than

question 132

Multiple Choice

If real GDP in 2011 (using 2002 prices) is lower than nominal GDP of 2010,then

• A) prices in 2011 are lower than prices in 2010.
• B) nominal GDP in 2011 equals nominal GDP in 2010.
• C) prices in 2011 are higher than prices in 2010.
• D) real GDP in 2011 is larger than real GDP in 2010.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater or less than one indicating the degree of responsiveness.

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price, holding other factors constant.

Elasticity Coefficient

A measure that quantifies the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, such as price.

Relative Change

The measure of change in a variable relative to its initial value, often expressed as a percentage.