If Real GDP Increases, We Know for Sure That

question 86

Multiple Choice

If real GDP increases, we know for sure that

• A)output has risen.
• B)prices have risen.
• C)prices have risen but output has remained constant.
• D)prices have remained constant.
• E)output has fallen.

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Definitions:

Average-Fixed-Cost Curve

A graphical representation that shows the average fixed costs of production at different levels of output.

Average-Total-Cost Curve

Graphical representation that shows how the average total costs of production change as the quantity of output is altered.

Average-Fixed-Cost Curve

A graphical representation that shows how the average fixed costs of production decrease as the quantity of output increases, due to spreading fixed costs over a larger number of units.

Average Total Cost

Average total cost is the total cost of production divided by the quantity of output produced, including both fixed and variable costs.