Suppose That in 1998, Nominal GDP in Liveria Is $4,500

question 67

Multiple Choice

Suppose that in 1998, nominal GDP in Liveria is $4,500 billion. If the GDP deflator is 150, real GDP in 1998 is:

• A) $300 billion.
• B) $3,000 billion.
• C) $5,000 billion.
• D) $6,750 billion.

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Definitions:

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision to pursue a certain action.