Which Component of GDP Is Not Correlated with the Price

question 126

Multiple Choice

Which component of GDP is not correlated with the price level?

• A) Consumption
• B) Investment
• C) Government spending
• D) Net exports

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Definitions:

Treasury Stock

Shares that were once a part of the outstanding shares and have been bought back by the company.

Statement of Cash Flows

A report detailing how variations in balance sheet accounts and income levels influence cash and cash equivalents.

Operating Activities

Activities that are directly related to the running of a business and its day-to-day functions, generating most of its revenue and expenses.

Financing Activities

Transactions and events where a business raises funds to support its operations and expansions, often through borrowing or equity issuance.