Suppose That Nominal GDP Fell from $5,000 Billion in 1997

question 70

Multiple Choice

Suppose that nominal GDP fell from $5,000 billion in 1997 to $4,800 billion in 1998. Suppose that over this same period real GDP did not change. In this instance:

• A) price increased and quantity was constant.
• B) price decreased and quantity was constant.
• C) quantity increased and price was constant.
• D) quantity decreased and price was constant.

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Definitions:

Manufacturing Process

Involves the steps, operations, and methods employed in transforming raw materials into finished goods or products.

Specifications

Detailed descriptions of the design, materials, and performance criteria that a product, service, or project must meet.

Disqualifying Suppliers

The process of removing vendors from consideration for contracts due to failure to meet specified criteria or standards.

Competitive Advantage

An attribute or set of attributes that allows an organization to outperform its competitors.