To Calculate the Time Required by Real GDP to Double

question 46

Multiple Choice

To calculate the time required by real GDP to double, we _____.

• A)divide the annual growth rate by 72
• B)divide 72 by nominal GDP
• C)divide real output by 72
• D)divide 72 by the annual growth rate
• E)multiply real GDP by 72

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insights into its financial position.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or production.

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Journal Entries

Transactions registered in a ledger that form the basis of all financial reporting and accounting.