Consider the Following Data That Gives the Quantity Produced and Unit

question 25

Multiple Choice

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.

-Real GDP can be calculated as:

• A) (nominal GDP * the GDP deflator) * 100.
• B) (nominal GDP √ the GDP deflator) * 100.
• C) (nominal GDP - the GDP deflator) * 100.
• D) (the GDP deflator √ nominal GD
• P) * 100.
• E) (nominal GDP * the long-run trend growth rate of GD
• P) * 100.

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Definitions:

Total Revenue

The overall revenue a business earns from sales of goods or provision of services throughout a given timeframe.

Price Falls

Occurs when the market price of a good or service decreases over time.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating its sensitivity.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.