Which of the Following Is a True Statement About Real

question 214

Multiple Choice

Which of the following is a true statement about real and nominal GDP?

• A)If nominal GDP increases from one year to the next,we know that production of goods and services has risen.
• B)Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year.
• C)Increases in average prices do not affect the calculation of nominal GDP.
• D)If real GDP increases from one year to the next,we know that production of goods and services has risen.

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Definitions:

Eliminated Costs

Expenses removed from a budget or accounting records, often due to cost-cutting measures.

Constrained Resource

A factor within a production process that limits the output or efficiency, such as machinery capacity or raw material supply.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed costs and profit.

Automated Factory

A production facility that relies heavily on automated processes and machinery to manufacture goods with minimal human intervention.