If Current Prices Are Used to Calculate the Value of Total

question 46

Multiple Choice

If current prices are used to calculate the value of total output produced by a country during a specific period of time, the result is called:

• A)real GDP.
• B)nominal GDP.
• C)full employment GDP.
• D)constant dollar GDP.

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Definitions:

Operating Activities

Transactions and events that pertain to the core business functions of an organization, influencing net income.

Inventory Decrease

A reduction in the quantity of goods held in stock by a company.

Investing Activities

Transactions involving the purchase and sale of long-term assets or investments, part of a company’s cash flow.

Cash Payments

Financial transactions involving the outflow of cash to settle obligations or purchase goods and services.