If You Have $10,000 and the Gross Domestic Product (GDP)

question 295

Multiple Choice

If you have $10,000 and the Gross Domestic Product (GDP) deflator increases from 100 to 110, then

• A) the $10,000 will buy 10 percent less of the goods and services produced by society.
• B) the $10,000 will buy 10 percent more of the goods and services produced by society.
• C) the value of the $10,000 increases.
• D) you will be able to buy fewer goods, but the real value of those goods will increase.

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Definitions:

Resource Requirements

The specific materials, labor, capital, and other resources needed to achieve an objective or project.

Efficiency

The ability to accomplish a task or produce an output with a minimum amount of waste, expense, or unnecessary effort.

Supervisor Wages

The compensation, often hourly or salaried, paid to individuals in supervisory positions for overseeing the work of others.

Factory

A factory is an industrial site where workers manufacture goods or operate machines processing one product into another, typically involving large-scale production methods and specialized equipment.