If You Wanted to Take 2000 Nominal GDP and Convert

question 160

Multiple Choice

If you wanted to take 2000 nominal GDP and convert it to 1995 prices,you would take 2000 nominal GDP and

• A)multiply it by (GDP deflator1995 4 GDP deflator2000).
• B)multiply it by (GDP deflator2000 4 GDP deflator1995).
• C)divide it by GDP deflator2000.
• D)divide it by (GDP deflator2000 + GDP deflator1995).

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Definitions:

Investor Corporation

Typically refers to a company whose primary business is holding, investing in, and managing securities for investment purposes.

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing the owners' share in the corporation.

Balance Sheet

A financial statement that outlines a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.