Suppose That Twenty-Five Years Ago a Country Had Nominal GDP

question 21

Multiple Choice

Suppose that twenty-five years ago a country had nominal GDP of $1,000,a GDP deflator of 200,and a population of 100.Today it has nominal GDP of $3,000,a GDP deflator of 400,and population of 150.What happened to the real GDP per person?

• A)It more than doubled.
• B)It increased,but it less than doubled.
• C)It was unchanged.
• D)It decreased.

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Definitions:

Life Cycle

The series of stages through which something (such as a living being, a product, or a project) goes from its beginning to its end.

Supply Curve

a graphical representation showing how the quantity supplied of a good or service varies with its price.

Marginal Cost

The expense incurred by producing one additional unit of a product.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, reflecting the average cost of each unit of output on variable factors.