Consider the Following Data That Identifies Real Gross Domestic Product

question 154

Multiple Choice

Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions:
-Between quarter 2 and quarter 3,real gross domestic product (GDP) grew by what percentage?

• A) 4 percent
• B) 3 percent
• C) 1 percent
• D) 2 percent
• E) -2 percent

---

Definitions:

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.

Accounts Receivable

Amounts owed to a company by customers for goods or services provided on credit.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Depreciation Expense

The allocated portion of the cost of a tangible or physical asset that is charged as an expense over its useful life.