Which of the Following Is Correct

question 36

Multiple Choice

Which of the following is correct?

• A)Nominal GDP is always less than real GDP.
• B)Nominal GDP is always greater than real GDP.
• C)Nominal GDP equals real GDP in the base year.
• D)Nominal GDP equals real GDP in all years but the base year.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Partial Income Statement

A financial document that reports a company's revenues, expenses, and profits over a portion of the fiscal year, rather than the entire year.

Working Capital

The measure of a company's operational liquidity, calculated as current assets minus current liabilities.

Current Assets

Assets that are expected to be converted into cash or used up within one year or the operating cycle, whichever is longer.