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.

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Definitions:

Income Tax Rate

The percentage at which an individual or corporation is taxed on its income, with the rate often varying based on the level of income.

Initial Investments

The initial amount of money invested in a project, asset, or company to cover setup costs or purchase capital assets.

Working Capital

The difference between current assets and current liabilities, indicating the liquidity available to fund day-to-day operations.

Income Tax Rate

The percentage of income that is paid to the government as tax.