A Decrease in the Price of Large Tractors Imported into the United

question 122

Multiple Choice

A decrease in the price of large tractors imported into the United States from Russia

• A)leaves the GDP deflator unchanged but decreases the consumer price index.
• B)decreases the GDP deflator but leaves the consumer price index unchanged.
• C)decreases both the GDP deflator and the consumer price index.
• D)leaves both the GDP deflator and the consumer price index unchanged.

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Definitions:

Marginal Product

The marginal product is the additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the variable cost per unit of output.

Average Fixed Cost

Average fixed cost is the fixed cost per unit of output, calculated by dividing total fixed costs by the number of units produced, which decreases as production increases.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the variable cost per unit of output.