If Hotdogs Cost $2 This Year and $3 Next Year

question 167

Multiple Choice

If hotdogs cost $2 this year and $3 next year, then 100 hotdogs will contribute

• A)$200 to this year's nominal GDP and $166 to next year's nominal GDP.
• B)$200 to this year's real GDP and $300 to next year's real GDP.
• C)the same dollar amount to each year's nominal GDP because hotdogs are intermediate goods.
• D)$200 to this year's nominal GDP and $300 to next year's nominal GDP.

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Definitions:

Account Form

A way of presenting a balance sheet where assets are on one side and liabilities and equity are on the other.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.

Liabilities

Financial obligations or debts that an entity owes to other parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Office Supplies Expense

This refers to the cost associated with consumable supplies used within an office setting, such as pens, paper, and toner.