If Prices Increased, We Need to Adjust Nominal GDP Values

question 57

Multiple Choice

If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms. We refer to that adjustment as:

• A) Inflating GDP
• B) Deflating GDP
• C) Compounding GDP
• D) Indexing GDP

Assess the impact of external factors on market equilibrium and surplus.

Analyze the effects of price changes on consumer and producer surplus.

Interpret supply and demand curves and their impact on market equilibrium.

Analyze the impact of government interventions, like price ceilings, on market surplus.

---

Definitions:

Type A Personality

A personality type characterized by high levels of competitiveness, self-imposed stress, impatience, and urgency, often associated with a higher risk of heart disease.

Anger

A strong feeling of displeasure or hostility that often arises from a perceived wrong or injustice.

Friedman

Refers to Milton Friedman, an American economist known for his research in macroeconomics, consumption analysis, and advocacy of free-market capitalism.

Type A Men

Individuals characterized by a highly competitive, aggressive, and impatient behavior pattern.