If a Nation's Nominal GDP Is $3,257 Million and Its

question 313

Multiple Choice

If a nation's nominal GDP is $3,257 million and its price level is 132, then its real GDP is

• A) $4.05 million.
• B) $24.67 million.
• C) $4299.24 million.
• D) $2467.42 million.

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Product Differentiation

The act of setting a product or service apart from others in order to increase its appeal to a designated target market.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Long-Run Demand Curve

A graphical representation showing the relationship between the quantity demanded of a good and its price over a long time period, considering adjustments in factors other than price.