If a Country Experiences a Rise in Prices but Produces

question 218

Multiple Choice

If a country experiences a rise in prices but produces the same quantity of output as in the previous year, its nominal GDP will _____ and its real GDP will _____.

• A) increase; also increase
• B) decrease; increase
• C) increase; be unchanged
• D) decrease; be unchanged

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Definitions:

Fair Value

The expected monetary return from disposing of an asset or the expense of relocating a liability in a controlled market interaction at the time of evaluation.

Business Combination

A merger or acquisition in which one entity acquires the assets or shares of another, consolidating the businesses into a single legal entity.

Common Shares

represent units of ownership interest or equity in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Regulatory Restrictions

Rules or limitations set by a regulatory authority that guide or constrain actions within a specific area or industry.