If Real GDP Is Larger Than Nominal GDP

question 111

Multiple Choice

If real GDP is larger than nominal GDP

• A) prices must be lower than in the base year.
• B)prices must be higher than in the base year.
• C)the economy must be growing.
• D)the economy must be shrinking.
• E)prices and output must be constant.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Cost Of Goods Sold

Directly related production costs for goods sold by a company, involving materials and labor.

LIFO

"Last In, First Out," an inventory valuation method where the most recently acquired items are sold or used first.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a particular period, indicating efficiency in inventory management.