Nominal GDP Will Increase

question 125

Multiple Choice

Nominal GDP will increase

• A)only if the unemployment rate rises.
• B)only if the quantity of goods and services produced increases.
• C)only if the average level of prices rises.
• D)only if both the average level of prices rises and the quantity of goods and services produced increases.
• E)if either the average level of prices rises or the quantity of goods and services produced increases.

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Definitions:

Acquired Company

A company that has been purchased by another entity.

Trading Securities

Marketable securities that a company holds for the purpose of trading in the short term, with the intent of generating profit from price movements.

Fair Value

The estimated market value of an asset or liability, reflecting the price that two willing parties would agree to in an arm's length transaction.

Held-to-maturity

A category for debt securities that a company has the positive intent and ability to hold until maturity, reported at amortized cost.