Suppose Real GDP in a Particular Year Is $5,000 Trillion

question 68

Multiple Choice

Suppose real GDP in a particular year is $5,000 trillion and nominal GDP in that same year is $4,000 trillion.What is the GDP price index?  

• A) 80 
• B) 125 
• C) 1000 
• D) 5000

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or company activity.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for significant competition based on quality, branding, and price.

Incurring A Loss

Experiencing a financial deficit where expenses exceed revenues.

Monopolistically Competitive

A market structure characterized by many firms producing similar, but not identical, products and where there are few barriers to entry or exit.