If in Some Year Nominal GDP Was $20 Billion and the GDP

question 28

Multiple Choice

If in some year nominal GDP was $20 billion and the GDP deflator was 50,what was real GDP?

• A)$2.5 billion.
• B)$10 billion.
• C)$40 billion.
• D)$100 billion.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and opportunity costs.

Investment Return

The gain or loss on an investment over a specified period, usually expressed as a percentage of the investment's cost.

Capital Income

Income earned on savings that have been put to use through financial capital markets.

Dividends

Payments made by a corporation to its shareholder members, typically from profits.