During the Most Recent Three Quarters, Real GDP Decreased from $200

question 195

Multiple Choice

During the most recent three quarters, real GDP decreased from $200 to $180 to $170. Economists describe this as a(n)

• A) concession.
• B) expansion.
• C) depression.
• D) recession.
• E) deflation.

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Definitions:

Import Quotas

Restrictions set by the government on the amount or monetary value of products allowed to be imported into a nation.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries and to generate revenue.

Quantity of Imports

The total volume or value of goods and services brought into one country from another over a specified time period.

Deadweight Loss

When a good or service's free market equilibrium is not met, a reduction in economic efficiency occurs.