If Nominal GDP Is $5 Trillion and Real GDP Is

question 201

Multiple Choice

If nominal GDP is $5 trillion and real GDP is $4 trillion,the GDP deflator is

• A)12.5.
• B)80.
• C)125.
• D)800.

---

Definitions:

Economies of Scale

The financial benefits gained by businesses as a result of their operating size, where the cost for each unit produced decreases as the scale of operation grows.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a specified period.

Marginal Cost

The amount spent on manufacturing one more unit of a product.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly, the seller faces no competition, as he is the sole seller of goods with no close substitute.