If Nominal GDP Is Increasing,which of the Following Is True

question 27

Multiple Choice

If nominal GDP is increasing,which of the following is true?

• A) More final goods and services are being produced.
• B) Prices on average are rising at a slower rate than the decline in the quantity of final goods and services produced.
• C) Less is being produced, and prices on average are falling.
• D) Production of final goods and services is increasing at a faster rate than prices are falling.
• E) Prices and the amount of final goods and services produced on average are constant.

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Definitions:

Customer Acquisition

The process of bringing new customers to a business through various marketing strategies and efforts.

Profitability

The ability of a business to earn a profit, which occurs when revenues exceed the costs and expenses involved in operating the business.

New Customers

Individuals or organizations that have recently started purchasing goods or services from a business, expanding the business's client base.

Profitability Metrics

Financial measures used to assess a company's ability to generate profit relative to its revenue, assets, or equity.