If Real GDP Was $800 Billion in 2011 and $850

question 52

Multiple Choice

If real GDP was $800 billion in 2011 and $850 billion in 2012,what likely occurred from 2011 to 2012?

• A)Total production of output increased.
• B)Either total production rose, or there was inflation, or both.
• C)The economy experienced inflation.
• D)The value of intermediate production increased.

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Definitions:

Operating Income

This represents the earnings before interest and taxes (EBIT) derived from a company's principal operating activities.

Year 2

Refers to the second year of a specific time frame, project, or financial period.

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product, excluding fixed manufacturing overhead.

Unit Product Cost

The total cost (variable and fixed) associated with producing one unit of a product.