In Years with Inflation, Nominal GDP Increases ________ Real GDP

question 57

Multiple Choice

In years with inflation, nominal GDP increases ________ real GDP.

• A) faster than
• B) slower than
• C) at the same rate as
• D) sometimes faster, sometimes slower, and sometimes at the same rate as

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Definitions:

ROE

Return on Equity, a profitability measure that calculates the ability of a company to generate profits from its shareholders' equity.

Profit Margin

A financial ratio that shows the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.

Assets

Resources owned or controlled by a business, individual, or entity, considered valuable because they can produce positive economic value or provide future benefits.

Current Ratio

A financial ratio indicating a firm's capacity to settle its short-term liabilities with assets that can be easily converted into cash within a year.