Janet Calculated the GDP Growth Rates for France Between 2012

question 131

Multiple Choice

Janet calculated the GDP growth rates for France between 2012 and 2013.Using 2012 prices for both years,GDP increased 5 percent.Using 2013 prices for both years,GDP increased 1 percent.Hence the chained-price method will calculate that between these years,real GDP increased by

• A)1 percent.
• B)3 percent.
• C)5 percent.
• D)6 percent.
• E)4 percent.

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Definitions:

Surplus

A scenario in which the supply of a particular good or service surpasses its demand at the existing market price.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market.

Rental Housing Market

The segment of the real estate market that involves the leasing or renting of property for residential purposes.

Rent-Control Scheme

A rent-control scheme is a government policy that sets a maximum price that can be charged for rental housing, aiming to make housing more affordable.