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.

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Definitions:

Variable Costs

Costs that change in proportion to the amount of goods or services produced.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, yielding the cost per unit on average.

Output

The complete sum of products or services created by an enterprise, field, or economic entity.

Marginal Cost

The cost of producing one additional unit of a good or service, a critical concept for understanding economic decision-making and pricing strategies.