Overall GDP Is the Most Common Gauge of

question 118

Multiple Choice

Overall GDP is the most common gauge of

• A)the balance of trade between countries.
• B)fluctuations in currency exchange rates.
• C)the consumer price index and purchasing power parity.
• D)the overall expansion or contraction of an economy.
• E)unemployment and future job forecasting.

---

Definitions:

Law of Demand

A principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Price

The amount of money required to purchase a good or service, determined by various market and economic factors.

Scarce Resources

Essential inputs that are available in limited quantities for the production of goods and services, leading to the problem of allocation.

Law of Demand

Economic principle stating that, ceteris paribus, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.