In Order to Convert Nominal GDP to Real GDP,we Must

question 86

Multiple Choice

In order to convert nominal GDP to real GDP,we must divide

• A)real GDP by the price index
• B)nominal GDP by the price index
• C)the price index by nominal GDP
• D)the price index by real GDP
• E)nominal GDP by real GDP

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Definitions:

Marginal Revenue

The gain in revenue from disposing of one additional unit of a good or service.

Price Elasticity

An indicator of the responsiveness of the quantity of a product demanded to its price change, represented in terms of percentage variation.

Demand Curve

An illustration depicting the correlation between a product's price and the level of demand from buyers, often characterized by a descending trajectory.

MR

Marginal Revenue, which is the increase in revenue resulting from the sale of one additional unit of a product.