The Quantity of Real GDP Demanded Equals $16

question 161

Multiple Choice

The quantity of real GDP demanded equals $16.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

• A) less than $16.4 trillion.
• B) $16.4 trillion.
• C) more than $16.4 trillion.
• D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage of revenue.

Net Sales

Net sales is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Stock Turn Rate

A measure of how quickly inventory is sold and replaced over a given period, indicating the efficiency of inventory management.

Markup

An additional amount incorporated into the buying price of products to compensate for running expenses and gain profit.