Nominal GDP Increases

question 29

Multiple Choice

Nominal GDP increases

• A)only if total production increases.
• B)only if prices increase.
• C)if either prices and/or total production increase.
• D)only if the productivity of resources increase.
• E)only if depreciation decreases.

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Definitions:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.

Non-Cash Items

Expenses charged against revenues that do not directly affect cash flow, such as depreciation.

Generally Accepted Accounting Principles (GAAP)

A framework for a common set of principles, rules, and procedures of accounting.

Historical Cost

The original monetary value of an asset or transaction, based on the actual amount paid or incurred at the time of acquisition, without adjusting for inflation or changes in market value.