A Country Reported a Nominal GDP of $115 Billion in 2020

question 114

Multiple Choice

A country reported a nominal GDP of $115 billion in 2020 and $125 billion in 2019 and reported a GDP deflator of 85 in 2020 and 100 in 2019. What happened to real output and prices from 2019 to 2020?

• A) Real output and prices both rose.
• B) Real output fell and prices rose.
• C) Real output rose and prices fell.
• D) Real output and prices both fell.

Determine the impact of changes in activity level on total and per unit fixed costs.

Identify cost drivers and their role in cost behavior.

Understand the definitions and behaviors of direct and indirect costs, as well as committed and discretionary fixed costs.

Distinguish between the concepts of gross margin, contribution margin, and net income.

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Definitions:

Financial Crisis

A situation in which the value of financial institutions or assets drops rapidly, leading to a loss of confidence among investors, lenders, and the public.

U.S. Dollars

The official currency of the United States, widely used as a standard of exchange in international markets and as a reserve currency globally.

Euro

The official currency of 19 out of the 27 European Union countries, which forms one of the largest economic and trading blocks in the world.

Adopted

The action of legally taking another's child and raising it as one's own or the acceptance and implementation of a measure, idea, or proposal.