Choose the Correct Statement

question 107

Multiple Choice

Choose the correct statement.

• A)Nominal GDP is just a more precise name for GDP.
• B)Nominal GDP is just a more precise name for real GDP.
• C)When nominal GDP increases, real GDP decreases.
• D)Nominal GDP and real GDP both increase when the average level of prices increases.
• E)We measure the change in production by comparing nominal GDP in one year with real GDP in the previous year.

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Definitions:

Dividend Paid

The amount distributed by a corporation to its shareholders from its earnings based on the number of shares each shareholder owns.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Dividend Paid

Dividend Paid refers to the amount of earnings distributed by a corporation to its shareholders as a reward for their investment.

Preferred Stock

A type of stock issued by corporations, which gives holders a right to share in earnings and liquidation before common shareholders do.