The Data on Real GDP Shows That

question 79

Multiple Choice

The data on Real GDP shows that

• A)real GDP rises and falls. It has tended to rise and fall equally and has remained roughly constant over time.
• B)real GDP rises and falls. It has tended to rise for longer periods and more quickly than it has fallen and therefore has risen through time.
• C)real GDP rises and falls. It has tended to fall for longer periods and more quickly than it has risen and therefore has fallen through time.
• D)Real GDP growth is almost exactly constant

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by the average accounts receivable.

Net Sales

The net income generated from sales, after subtracting the costs related to returns, compensations for damaged or lost items, and price reductions.

Average Accounts Receivable

A measure of the average amount of money owed to a company by its customers over a period.

Maturity Date

The specified date on a financial instrument at which the principal (or nominal) amount is due to be paid back in full.