If Real GDP Is Greater Than Nominal GDP for a Particular

question 49

Multiple Choice

If real GDP is greater than nominal GDP for a particular year, then

• A) prices must have fallen between the current year and the base year.
• B) production must have increased between the current year and the base year.
• C) production must have fallen between the current year and the base year.
• D) prices must have risen between the current year and the base year.
• E) prices must have fallen between the current year and the immediate past year.

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Definitions:

Inventory Control

A control that ensures that inventory is only big enough to meet immediate needs.

Predetermined Point

A specific goal, outcome, or condition that is decided in advance before any action is taken.

Balanced Scorecards

A strategic planning and management system used by organizations to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Financial Performance

An assessment of how well an organization uses its assets from its primary mode of business and generates revenues.