The Two Factors That Must Be Subtracted from the Percent

question 75

Multiple Choice

The two factors that must be subtracted from the percent change in nominal gross domestic product (GDP) to yield the percent change in per capita real GDP are the

• A) percent change in prices and the rate of investment.
• B) percent change in prices and the rate of population growth.
• C) rate of investment and the rate of savings.
• D) rate of population growth and the rate of savings.
• E) rate of investment and the rate of population growth.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Adjusting Entries

At the conclusion of an accounting cycle, entries are documented in the accounting ledger to distribute revenues and costs to the actual period they happened.

Types

Varieties or classifications into which objects, people, or concepts can be grouped based on shared characteristics.

Profit Margin Ratio

A financial metric used to evaluate a business's profitability by dividing net income by net sales.