If Real GDP Is Greater Than Nominal GDP for a Particular

question 254

Multiple Choice

If real GDP is greater than nominal GDP for a particular year,then

• A)production must have fallen between the current year and the base year.
• B)production must have increased between the current year and the base year.
• C)prices must have fallen between the current year and the base year.
• D)prices must have risen between the current year and the base year.
• E)prices must have fallen between the current year and the immediate past year.

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Definitions:

Valve Division

A specialized department within a company that focuses on the production and sales of valve-related products.

Pump Division

A specialized section within a company focusing on producing and managing pump-related products and services.

Transfer Price

The cost at which various units within the same corporation sell goods and services to each other.

Idle Capacity

The unused portion of a company's production capacity, where resources such as space, labor, or equipment are underutilized.