If Real GDP in a Particular Year Is $80 Billion

question 185

Multiple Choice

If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the GDP price index for that year is

• A) 100.
• B) 200.
• C) 240.
• D) 300.

---

Definitions:

Aggregate Supply

The aggregate output of goods and services generated inside an economy, measured at a specific price level over a designated time frame.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, serving as a key indicator of economic health.

Agency

In economics and finance, refers to a relationship where one party, the agent, makes decisions or performs a service on behalf of another, the principal.

Cyclical Unemployment

Unemployment directly related to cycles of economic upturn and downturn.