If Real GDP Falls from One Period to Another, We

question 182

Multiple Choice

If real GDP falls from one period to another, we can conclude that:

• A)deflation occurred.
• B)inflation occurred.
• C)nominal GDP fell.
• D)less goods and services have been produced.

---

Definitions:

Statement of Comprehensive Income

A financial statement that shows all changes in equity during a period, including items not reflected in the net income.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses.

Prior-Period Adjustments

Corrections of errors in previously issued financial statements for periods prior to the issuance of the current financial statements.

Net Income

The net income of a business, which is the amount remaining from total revenue after deducting all costs and taxes.