Table 23-5 The Country of Caspir Produces Only Cereal and Milk. Quantities

question 93

Multiple Choice

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
-Refer to Table 23-5. In 2017, this country's

• A)real GDP was $900, and the GDP deflator was 138.9.
• B)real GDP was $1250, and the GDP deflator was 128.0.
• C)real GDP was $900, and the GDP deflator was 128.0.
• D)real GDP was $1250, and the GDP deflator was 138.9.

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Definitions:

Equilibrium Price

The cost level at which the supply of products equals the demand for those products in the market.

Market Demand

The total amount of a product or service that all consumers in a market are willing and able to purchase at varying prices over a specified time period.

Market Supply

The total amount of a product or service that is available for purchase at any given price level in a market.

Equilibrium Price of X

The market price at which the quantity of a commodity demanded equals the quantity supplied, specifically for commodity X.