If Real Gross Domestic Product (GDP)in a Particular Year Is

question 32

Multiple Choice

If real gross domestic product (GDP) in a particular year is $5,000 trillion and nominal gross domestic product (GDP) in that same year is $4,000 trillion,then the:

• A)consumer price index (CPI)is 125.
• B)economic activity has decreased by 20 percent.
• C)GDP price index is 125.
• D)GDP price index is 80.
• E)economy has grown by 20 percent.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, indicating financial health and liquidity.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Net Cash Provided

The amount of cash generated from a company's operating, investing, and financing activities during a specific period.