If the Nominal GDP Was Reported at $1,305

question 65

Multiple Choice

If the nominal GDP was reported at $1,305.80 billion and inflation was 2.5%, what is the level of real GDP for the period?

• A)$1,179.54
• B)$1,191.41
• C)$1,212.75
• D)$1,255.01
• E)$1,273.95

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Definitions:

Variable Input

An input whose quantity can be changed in the short run to increase or decrease production.

Average Product of Labor

The output produced per unit of labor input, calculated by dividing total output by the total number of labor units used.

Variable Input

A production factor that can be adjusted in the short term to change the level of output, such as labor or raw materials.

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent, salaries, and equipment costs.