Historically, Real GDP Has Increased Less Rapidly Than Nominal GDP

question 214

Multiple Choice

Historically, real GDP has increased less rapidly than nominal GDP because

• A)price indices have not reflected improvements in product quality.
• B)the general price level has increased.
• C)technological progress has resulted in more efficient production.
• D)the general price level has decreased.

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Definitions:

Office Space

Premises used by businesses to carry out their day-to-day activities and operations.

Interest-Bearing Note

A debt instrument that requires the borrower to pay not only the principal amount but also periodic interest payments.

Adjusting Entries

Entries made in journal accounts at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Annual Accounting Period

The 12-month period a company uses for accounting purposes to report its financial performance.