If Real GDP Rose in 2008, We Can Conclude That

question 241

Multiple Choice

If real GDP rose in 2008, we can conclude that:

• A) production rose in 2008.
• B) the price level rose in 2008.
• C) either production, or the price level, or both, rose in 2008.
• D) neither production nor the price level rose in 2008.

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Definitions:

Carrying Amount

The book value of assets and liabilities that is reported in the financial statements, calculated as the original cost minus any depreciation, amortization, or impairment costs made against the asset.

Fair Value

The financial figure anticipated when disposing of an asset or the price to move a liability in a regulated exchange involving market entities on the date of valuation.

Gain On Bargain Purchase

Occurs when a company acquires another company for a price less than the fair market value of its net assets, resulting in a gain on the acquisition balance sheet.

Income Tax Expense

The accounting expense associated with the income taxes a company is obligated to pay to governmental authorities based on its taxable income.