If Nominal GDP Increased by 11 Per Cent While Real

question 26

Multiple Choice

If nominal GDP increased by 11 per cent while real GDP increased by only 5 per cent, then:

• A) the price level must have increased by around 6 per cent
• B) the price level must have increased by around 16 per cent
• C) the price level remained steady but real output fell by around 6 per cent
• D) the unemployment rate must have fallen during the year

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period.

CCA Pool

Refers to the Canadian Capital Cost Allowance pool, a system used for tax depreciation of property or equipment in Canada, grouping assets with similar depreciation rates.

Equipment Sale

Equipment Sale involves the process of selling tools, machinery, and other tangible assets used in operating a business.

Net Working Capital

This reflects the variance between what a business owns in the short term versus what it owes, highlighting its financial robustness and operational productivity.