Nominal GDP

question 107

Multiple Choice

Nominal GDP

• A) has been adjusted for changes in the general price level.
• B) measures the real level of output in the economy.
• C) measures national output on the basis of the current year's prices.
• D) tends to rise by a smaller amount than real GDP when the general price level increases.
• E) measures changes in the output of intermediate goods and services.

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Definitions:

Cash Basis

An accounting method that recognizes revenues and expenses only when money is actually received or paid out.

Sales Adjusted

The revision of sales figures to reflect returns, allowances for damaged goods, or changes due to promotional strategies, providing an accurate net sales number.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, respectively, not when the transactions occur.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold in a company.