If Real GDP Grows from $10 Trillion in 2002 to $10.5

question 67

Multiple Choice

If real GDP grows from $10 trillion in 2002 to $10.5 trillion in 2003,the growth rate for real GDP is

• A)5%.
• B)10%.
• C)50%.
• D)0.5%.

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Definitions:

Long-run Equilibrium

Describes a state in a market where supply equals demand, with sufficient time for all factors of production to adjust and no external pressures.

Demand

The measure of a commodity or service consumers intend and are able to acquire at multiple price levels during a set time span.

Economic Profits

Profits exceeding the opportunity costs of all resources employed, including both explicit and implicit costs, signifying above-normal returns.

Long Run

An economic term referring to a period in which all factors of production and costs are variable, allowing for full adjustment to changes in the market.