Demand Tends to Be

question 33

Multiple Choice

Demand tends to be:

• A) more elastic in the short term than in the long term.
• B) more inelastic in the short term than in the long term.
• C) equally elastic in the short term and in the long term.
• D) None of the statements is correct.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in real terms.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured using current prices without adjusting for inflation.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to real GDP.

Per Capita Real GDP

An economic metric that measures the economic output of a country adjusted for inflation and divided by the total population.