If Real GDP Increased from $10 Billion to $11 Billion

question 155

Multiple Choice

If real GDP increased from $10 billion to $11 billion from the first quarter of 2016 to the first quarter of 2017, but had increased by 4% from the fourth quarter of 2016 to the first quarter of 2017, the BEA would report first quarter of 2017 GDP growth as _____ using the year-over-year method and _____ using the annualized method.

• A) 10%; 4%
• B) 10%; 16%
• C) 40%; 4%
• D) 40%; 16%

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Definitions:

Break-Even Sales Volume

The quantity of products sold or services provided at which total revenues equal total costs, resulting in no profit or loss.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profit.

Net Profit

The amount of money remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenues.

Goal Seek Analysis

A function in spreadsheet software that finds the input value needed to achieve a specified goal.