Nominal GDP Is Measured in _____, and Real GDP Is

question 71

Multiple Choice

Nominal GDP is measured in _____, and real GDP is measured in:

• A) current market outputs; constant outputs.
• B) constant outputs; current market outputs.
• C) constant prices; current market prices.
• D) current market prices; constant prices.

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash in the short term.

Long-Term Liabilities

Financial obligations of a company not due for more than one year, including bonds payable, long-term leases, and pension obligations.

Times Interest Earned

A ratio that measures creditor margin of safety for interest payments, calculated as income before interest and taxes divided by interest expense.

Income Tax Expense

The total amount of income tax a company reports as an expense in its income statement for a given period.