Nominal GDP Is Calculated by Using

question 62

Multiple Choice

Nominal GDP is calculated by using

• A)prices set in a base year.
• B)average prices in all major cities.
• C)current prices.
• D)prices charged by initial producers.

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Definitions:

Effective Interest Rate

The real interest rate on a loan or financial product, accounting for the effect of compounding over a given period.

Minimum

The lowest possible amount, quantity, or degree achievable or permissible.

Gross Working Capital

The total of all current assets in a company, which includes items such as cash, inventory, and accounts receivable.

Current Assets

Assets expected to become cash in less than one year. Current assets are largely cash, receivables, and inventories.