A Country Reported a Nominal GDP of $85 Billion in 2005

question 88

Multiple Choice

A country reported a nominal GDP of $85 billion in 2005 and $100 billion in 2004;it reported a GDP deflator of 100 in 2005 and 105 in 2004.Between 2004 and 2005,

• A)real output and the price level both rose.
• B)real output rose and the price level fell.
• C)real output fell and the price level rose.
• D)real output and the price level both fell.

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Definitions:

Assets

Economic resources or valuable items that a business owns or controls with the expectation that they will provide future benefits.

Mismanagement Decisions

Poor or inefficient decisions made in the management of a company that can lead to negative outcomes or failure.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and often locally based, playing a significant role in the economy.

Industry Average Analysis

A comparison of a firm’s financial ratios to the industry averages.