The Growth Rate of Real GDP Is Measured by the Following

question 138

Multiple Choice

The growth rate of real GDP is measured by the following formula:

• A) real GDP in the current year minus real GDP in the previous year.
• B) real GDP in the previous year minus real GDP in the current year.
• C) \(\left( \frac { \text { real GDP in the current year - real GDP in the previous year } } { \text { real GDP in the previous year } } \right)\) × 100.
• D) (real GDP in the current year + real GDP in the previous year) ÷ 2.
• E) (real GDP in the current year minus real GDP in the previous year) × 100.

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Definitions:

Revenue

The cumulative revenue produced from the sale of goods or provision of services directly linked to the main business activities of a company.

Unearned Rent Revenue

Income received by a property owner for rent that has not yet been earned because the time period the rent covers has not yet passed.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account.