When Economists Use Market Values to Aggregate Output, They Sum

question 123

Multiple Choice

When economists use market values to aggregate output, they sum the:

• A) number of items produced.
• B) quantity of items produced.
• C) price times the quantity of each item produced.
• D) amount of each item produced.

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Definitions:

Economic Growth

The escalation in the real value of products and services an economy produces, adjusted for inflation, over time.

Outward Shift

Refers to an expansion in an economy's production possibility frontier, indicating an increase in the ability to produce goods and services.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a fixed amount of resources and technology in a given period.

7 Percent Unemployment

A situation where 7 out of every 100 labor force participants are without a job and actively seeking employment, indicating the level of joblessness in an economy.