To Adjust Nominal GDP for a Given Year in Order

question 186

True/False

To adjust nominal GDP for a given year in order to obtain real GDP, we multiply the nominal GDP by the price index.

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Definitions:

Sales Increase

Refers to the rise in the amount of goods or services sold by a company over a specific period, showcasing business growth.

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.

Retained Earnings

Cumulative net earnings or profit of a firm after accounting for dividends; they are reinvested in the core business or to pay debt.

Net Income

The net income of a company once all costs and taxes are deducted from the overall revenue.