In Order to Determine the Economy's Real GDP Growth Rate

question 94

Multiple Choice

In order to determine the economy's real GDP growth rate between two time periods,we should look at

• A)nominal national income,because it compares actual output in each time period.
• B)real national income in each time period,which is equal to nominal national income corrected for price-level changes.
• C)potential national income,corrected for price-level changes.
• D)real national income in each period,which is equal to nominal national income corrected for quantity changes.
• E)only the real national product from the latest time period.

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay; a measure of consumer benefit.

Producer Surplus

The difference between the amount a producer is actually paid for a good compared to the minimum amount they would accept for the good.

Excess Supply

A market condition where the quantity of a commodity available for sale exceeds the quantity demanded at the current price.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, representing their gain.