If Real GDP in 2005 Is $8,000 Billion and the Price

question 140

Multiple Choice

If real GDP in 2005 is $8,000 billion and the price level is 125,what is nominal GDP in 2005?

• A)$10,000 billion
• B)$9,200.5 billion
• C)$6,830.6 billion
• D)$5,000 billion

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Definitions:

Journal

An accounting record where all business transactions are initially recorded in chronological order.

Book of Original Entry

The first place where financial transactions are recorded, including journals.

Journal Entry

A record in accounting that documents a business transaction, showing the accounts impacted and the amounts debited and credited.

Debit Account

A bookkeeping record that raises the value of an asset or expense, or lowers the value of a liability or equity.