-Refer to the Table in the Exhibit

question 42

Multiple Choice

$$\begin{array} { c c c } \hline \text { Year } & \text { Consumer price index } & \text { Nominal GDP } \\\hline 2001 & 100 & \$ 95 \text { billion } \\2002 & 105 & \$ 110 \text { billion } \\2003 & 110 & \$ 120 \text { billion } \\2004 & 120 & \$ 125 \text { billion } \\2005 & 132 & \$ 137.5 \text { billion } \\\hline\end{array}$$
-Refer to the table in the exhibit.Between 2004 and 2005, what has happened to real GDP for this nation?  

• A) It increased by about $5 billion. 
• B) It increased by about $2 billion. 
• C) It remained almost constant. 
• D) It decreased by about $5 billion.

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Definitions:

Consolidated Financial Statements

Financial statements that represent the consolidation of a corporation and all its subsidiaries, portraying the financial position and performance of the company as a single entity.

Reporting Entity

A reporting entity is an entity or economic unit for which financial statements are prepared and presented to users.

Parent Entity

A company that has control, directly or indirectly, over other companies or subsidiaries.

Control

The ability to control the economic and functional strategies of an organization in order to gain advantages from its operations.