GDP Can Be Used to Measure Both Short-Term Changes (I

question 62

True/False

GDP can be used to measure both short-term changes (i.e. ,over several months)and long-term changes in economic activity.

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Definitions:

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product are produced.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two or more goods and services that can be produced with available resources and technology.

Opportunity Costs

The cost of choosing one option over another, represented by the value of the opportunities or benefits the second-best choice would have provided.

Aggregate Demand

The total demand for goods and services within a particular market or economy at a given overall price level and in a given time period.