Choose the Correct Statement

question 62

Multiple Choice

Choose the correct statement.

• A)When nominal GDP increases, real GDP decreases.
• B)Nominal GDP is just a more precise name for real GDP.
• C)We measure the change in production by comparing nominal GDP in one year with real GDP in the previous year.
• D)Nominal GDP is just a more precise name for GDP.
• E)Nominal GDP and real GDP both increase when the average level of prices increase.

---

Definitions:

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often paid dividends before common shareholders.

Treasury Shares

Previously outstanding shares repurchased by a corporation that are not canceled or restored to unissued status.

Repurchased Shares

Stocks that have been bought back by the issuing company from shareholders, reducing the amount of outstanding shares on the market.

Outstanding Shares

A corporation’s shares currently held by shareholders.