If the Percent Change in Nominal GDP Is 6 Percent

question 111

Multiple Choice

If the percent change in nominal GDP is 6 percent and the percent change in real GDP is 2 percent, inflation is:

• A)0 percent.
• B)2 percent.
• C)4 percent.
• D)6 percent.

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Definitions:

Dividend Announcement

is a public declaration by a company of its intention to pay out earnings to its shareholders in the form of dividends.

Signaling Effect

A phenomenon where decisions made by a company send signals to the market about its future prospects or the value of its stock.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests in the company.

Declaration Date

The specific date on which a company announces its intention to pay a dividend or distribution.