Table 2-2 -Refer to Above Table 2-2.Choosing the Prices of Year 2

question 20

Multiple Choice

Table 2-2

-Refer to above Table 2-2.Choosing the prices of year 2 gives a ________ increase in real GDP because year 2 prices place a ________ valuation on quantities that have increased ________ rapidly.

• A)lower,higher,least
• B)higher,lower,most
• C)higher,higher,least
• D)lower,lower,most

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Definitions:

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.

Price Decline

Price decline refers to a decrease in the value or cost of an asset or commodity over a period, often influenced by market conditions or changes in supply and demand.

Write Down

The reduction in the book value of an asset when its fair market value has fallen below its current book value.

Accountants

Professionals who perform accounting functions such as audits or financial statement analysis according to prescribed methods.