A Giffen Good Is a Good for Which an Increase

question 215

Multiple Choice

A Giffen good is a good for which an increase in the price

• A)decreases the quantity supplied.
• B)increases the quantity supplied.
• C)decreases the quantity demanded.
• D)increases the quantity demanded.

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Definitions:

GDP

Gross Domestic Product, which measures the total economic output of a country, accounting for all goods and services produced within a given period.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.

Nominal GDP

The gross domestic product measured at current market prices, without adjustment for inflation.

GDP Deflator

An index that measures the change in prices of all new, domestically produced, final goods and services in an economy over a period of time.