The Difference Between Nominal GDP and Real GDP Is

question 125

Multiple Choice

The difference between nominal GDP and real GDP is:

• A) real output growth.
• B) the price level.
• C) nominal output growth.
• D) long-run trend GDP.
• E) average output growth.

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Definitions:

Retained Earnings

Retained earnings refer to the portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders, often used for investment or to pay off debts.

Debt-Equity Ratio

A gauge that marks the relative positions of debt and equity in the funding of a company's assets.

Dividend Payout Ratio

The portion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Retention Ratio

The proportion of net income that is retained by a corporation rather than distributed to its shareholders as dividends.