Which of the Following Statement Is Correct

question 246

Multiple Choice

Which of the following statement is correct?

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

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Definitions:

Predetermined Overhead

An estimated amount of overhead cost assigned to each unit of production in advance of the actual production.

Actual Manufacturing

The real and factual process of producing goods, as opposed to planned or estimated production.

Job-Order Costing

An accounting method used to track costs and revenue for individual jobs or batches, suitable for customized orders.

Raw Materials

Basic materials that are used in the production process of manufacturing goods.