If GDP in Year 1 Is the Same Dollar Amount

question 12

Multiple Choice

If GDP in year 1 is the same dollar amount as the GDP in year 2,does it follow that Real GDP in year 1 is the same as Real GDP in year 2?

• A) Yes,since prices must necessarily be the same in the two years.
• B) No,since equal GDP figures do not account for population.
• C) No,since prices may not be the same in the two years.
• D) Yes,since equal GDP figures do account for a change in the quality of goods produced in the two years.
• E) none of the above

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Definitions:

Law of Demand

An economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa, holding all else constant.

Prices

The amount of money required to purchase goods or services, typically set by supply and demand dynamics in the market.

Scarce Resources

Refers to the limited availability of resources that are used for the production of goods and services.

Classified Ads

Short advertisements placed in a bulletin, newspaper, or online platform, categorized by the type of product, service, or job offered.