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When the BEA Calculates Real GDP Using the Average of Prices

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When the BEA calculates real GDP using the average of prices in the current year and the year preceding it,and this average changes from year to year,this is called calculating GDP using


Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets, calculated as current assets divided by current liabilities.

Acid-Test Ratio

An economic indicator assessing the capability of a business to fulfill its immediate liabilities using its most liquid assets, without counting inventory.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit customers.

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

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