Assume an Economy Which Is Producing Only One Product

question 167

Multiple Choice

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows.

-Refer to the above data.The nominal GDP for year 3 is:

• A) 125 percent higher than the nominal GDP for year 1.
• B) 50 percent higher than the nominal GDP for year 1.
• C) 120
• D) 30

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Definitions:

Preemptive Merger

A strategic merger aimed at preventing potential competition by acquiring or merging with a competitor before they become a larger threat.

Justice Department

A government department responsible for the enforcement of the law and administration of justice.

Staggered Board

A corporate board of directors structure where members are divided into classes serving different term lengths, making it difficult for a complete board takeover in any single election.

Poison Pills

A defensive strategy used by companies to deter hostile takeovers by making the company less attractive to potential acquirers.