Consider the Following Data That Gives the Quantity Produced and Unit

question 65

Multiple Choice

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.

-Real GDP increases if:

• A) current prices increase.
• B) current quantities increase.
• C) current prices are constant.
• D) nominal GDP increases.
• E) nominal GDP decreases.

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Definitions:

Future Cash Flows

The amount of money that is expected to be received or paid out by a business in the future.

Exchange of Assets

Transactions where businesses or individuals trade assets of similar value, such as property, equipment, or securities.

Units-Of-Production Method

A depreciation method allocating the cost of an asset over its useful life based on its level of activity or production.

Depletion

The gradual exhaustion of natural resources, such as minerals, forests, or oil reserves, as these resources are extracted or used.