In Order to Determine the Economy's Real GDP Growth Rate

question 94

Multiple Choice

In order to determine the economy's real GDP growth rate between two time periods,we should look at

• A)nominal national income,because it compares actual output in each time period.
• B)real national income in each time period,which is equal to nominal national income corrected for price-level changes.
• C)potential national income,corrected for price-level changes.
• D)real national income in each period,which is equal to nominal national income corrected for quantity changes.
• E)only the real national product from the latest time period.

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Definitions:

Reinvesting Earnings

The practice of using a company's profits to invest back into the business to fund growth, expansion, or improvements rather than distributing it to shareholders as dividends.

Strategic Plan

A document that outlines an organization's long-term goals and the strategies it will use to achieve them.

Time Horizon

The length of time over which an investment or a project is expected to be pursued or a goal to be achieved.

Operating Plan

A detailed description of how a company's operational activities will be carried out to meet goals and objectives, including production, staffing, and inventory requirements.