Table 23-4 The Table Below Contains Data for the Country of Dachsland,which

question 169

Multiple Choice

Table 23-4
The table below contains data for the country of Dachsland,which produces only pretzels and books.The base year is 2005.

-Refer to Table 23-4.In 2005,Dachsland's

• A) nominal GDP was greater than real GDP,and the GDP deflator was greater than 100.
• B) nominal GDP was equal to real GDP,and the GDP deflator was equal to 1.
• C) nominal GDP was less than real GDP,and the GDP deflator was less than 100.
• D) nominal GDP was equal to real GDP,and the GDP deflator was equal to 100.

---

Definitions:

Realized and Unrealized Gains

Profits made from the sale of assets (realized gains) versus increases in the value of assets still held (unrealized gains).

Entity Approach

A method in accounting that treats a business as separate from its owners or stakeholders for reporting and evaluation purposes.

Consolidated Balance

A financial statement that presents the total assets, liabilities, and equity of a parent company and its subsidiaries as if they are a single entity.

Retained Earnings

Profits generated by a company that are not distributed to shareholders as dividends, but are kept for reinvestment in the business or to pay off debt.