Which of the Following Statements Is Correct

question 56

Multiple Choice

Which of the following statements is correct?

• A)If nominal GDP decreases,then real GDP must increase.
• B)If nominal GDP increases,then real GDP must increase.
• C)Nominal and real GDP can change either in the same direction or the opposite direction.
• D)If nominal GDP does not change,then real GDP cannot change.
• E)If real GDP decreases,then nominal GDP must decrease.

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Definitions:

FICA Taxes

Federal taxes in the United States collected to fund Social Security and Medicare, required deductions from employees’ paychecks.

Quarterly Federal Tax Return

A tax document filed four times a year by employers to report their employee's wages and the federal income and FICA taxes withheld.

FUTA Tax Return

A federal tax form required from employers to report and pay unemployment taxes to the Internal Revenue Service, associated with the Federal Unemployment Tax Act.

Wage And Tax Statement

A form, typically referred to as a W-2 form in the United States, that employers provide to employees detailing the employee's annual wages and the amount of taxes withheld from their paycheck.