If Nominal GDP Rises from One Year to the Next

question 131

Multiple Choice

If nominal GDP rises from one year to the next, then

• A) the economy must be producing a larger output of goods and services.
• B) prices at which goods and services are sold must be higher.
• C) either output, or the general level of prices, or both must be rising.
• D) employment and productivity must be rising.

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Definitions:

Budgeted Balance Sheet

A projection of a company's financial position at the end of a specified period, forecasting assets, liabilities, and owner's equity.

Current Year

Refers to the present calendar year or fiscal year in which business operations and accounting transactions are being considered.

Direct Materials Budget

An estimation of the type and amount of materials required to meet production goals, along with the projected cost.

Quantity

The amount or number of a material or product, which can be measured or counted.