The Fact That Nominal GDP Has Risen Faster Than Real

question 238

Multiple Choice

The fact that nominal GDP has risen faster than real GDP

• A) suggests that the base year of the GDP price index has been shifted.
• B) tells us nothing about what has happened to the price level.
• C) suggests that the general price level has fallen.
• D) suggests that the general price level has risen.

---

Definitions:

Cash Flow

Cash flow is the net amount of cash being transferred into and out of a business, indicating its ability to generate value, pay expenses, and invest in new opportunities.

Accumulated Depreciation

The total depreciation expense charged against an asset since it was acquired, reflecting its loss in value over time.

Original Cost

The initial expenditure involved in acquiring an asset or launching a project.

Cash Proceeds

Cash proceeds are the total amount of cash received from transactions, sales, financing, or other business activities during a specific period.