Measuring GDP in Nominal Terms

question 56

Multiple Choice

Measuring GDP in nominal terms

• A)is the most effective method because it accurately measures how an economy's physical production has changed over time.
• B)is unreliable because the quality of goods changes over time.
• C)is the market value of an economy's final output using the market prices of a given base year.
• D)does not tell us how an economy's physical production has changed over time.

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Definitions:

Common Stock Dividend Distributable

A liability recorded on a company's balance sheet for dividends declared but not yet paid to shareholders.

Board of Directors

The Board of Directors is a group of individuals elected by the shareholders of a company to oversee the management and make major decisions.

Stock Dividend

A dividend payment made in additional shares of a company's stock instead of cash.

Cash Dividend

A distribution of earnings made by a company to its stockholders, often in the form of profits.