If Real GDP Increases, We Know for Sure That

question 86

Multiple Choice

If real GDP increases, we know for sure that

• A)output has risen.
• B)prices have risen.
• C)prices have risen but output has remained constant.
• D)prices have remained constant.
• E)output has fallen.

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Definitions:

Planning and Control Tool

Instruments or techniques used in the management process to set objectives, assess future trends, and oversee progression towards desired outcomes.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity situation by comparing its most liquid assets, excluding inventory, to its current liabilities.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, including cash, inventory, and receivables.

Inventory

The total amount of goods and materials held in stock by a business or organization.