A Fixed or Rigid Price Level Implies

question 132

Multiple Choice

A fixed or rigid price level implies

• A)that income is fixed.
• B)real GDP is greater than nominal GDP.
• C)nominal GDP is less than real GDP.
• D)real GDP equals nominal GDP.

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Definitions:

Expense

An outflow of cash or other valuable assets that a business incurs as a result of its operations intended to generate revenue.

Liability

Financial obligations or debts that a company owes, which are settled over time through the transfer of economic benefits including money, goods, or services.

Trial Balance

A report that lists all the balances of the general ledger accounts to check the correctness of bookkeeping entries.

Entry Posted

The action of recording an accounting entry in the ledger, which finalizes the transaction and makes it part of the financial records.