If Nominal GDP in One Year Is $5,000 Billion and the Price

question 46

True/False

If nominal GDP in one year is $5,000 billion and the price index is 135, then the real GDP that year would be $3,704 billion.

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Definitions:

Revenue Expenditures

Payments made for ordinary maintenance of an asset or unnecessary or unreasonable situations.

Plant Assets

Long-term tangible assets used in the production of goods or services.

Capital Expenditures

Original cost of an asset as well as additions or enlargements, extraordinary repairs, and betterments.

Budgeting

The process of creating a plan to spend your money, allocating future income towards expenses, savings, and debt repayment.