An Increase in Nominal GDP

question 44

Multiple Choice

An increase in nominal GDP

• A) is absolute real economic growth.
• B) is per capita real economic growth.
• C) is both per capita and absolute real economic growth.
• D) does not necessarily mean either absolute or per capita real economic growth.

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Definitions:

Short Run

A period of time in which at least one input, typically capital, is fixed, and producers can only adjust the variable inputs like labor.

Long Run

A period in economics during which all inputs and operations can be varied, allowing for the adjustment to changes in market conditions or demand.

Very Long Run

In microeconomics, a period of time long enough that technology can change and firms can introduce new products.