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A Country Reported a Nominal GDP of $115 Billion in 2012

question 168

Multiple Choice

A country reported a nominal GDP of $115 billion in 2012 and $125 billion in 2011 and reported a GDP deflator of 85 in 2012 and 100 in 2011.What happened to real output and prices from 2011 to 2012?


Definitions:

Annual Net Cash Flow

The difference between a company's total cash inflows and outflows over one fiscal year, reflecting its ability to generate cash.

Average Rate Of Return

A method of evaluating a capital investment proposal that focuses on the expected profitability of the investment; computed as average annual income divided by average investment. Also referred to as accounting rate of return.

Average Income

The mean amount of earnings generated over a specified period of time, taking into account all revenue sources.

Cash Payback Method

The cash payback method is a capital budgeting method that estimates the time required for a project to generate cash flows sufficient to recoup the initial investment.

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