The GDP Price Index Equals I

question 214

Multiple Choice

The GDP price index equals i. nominal GDP divided by real GDP multiplied by 100.
Ii. a measure of the price level.
Iii. an average of current prices expressed as a percentage of base-year prices.

• A)i only
• B)ii and iii
• C)iii only
• D)i and ii
• E)i, ii, and iii

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

Fixed Costs

Expenses that do not change with the volume of output, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that vary directly with the amount of production output.

Total Costs

Total costs encompass the sum of all expenses incurred in the production of goods or services, including fixed and variable costs.