Table 19-9 -Refer to Table 19-9.Consider the Following Data on Nominal GDP

question 94

Multiple Choice

Table 19-9

-Refer to Table 19-9.Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The base year used in calculating real GDP is

• A) 2008.
• B) 2009.
• C) 2010.
• D) 2011.

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Definitions:

Ordinary Annuity

A financial product resulting in payments of a fixed amount received or paid at the end of period intervals.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, with this process happening every month.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal each month before the next interest calculation.

Compounded Quarterly

The technique of determining interest by taking into account the original principal sum and the interest that has accrued in earlier cycles, with this process being carried out every three months.