If Nominal GDP Was $11,500 Billion in 2003 and the Price

question 127

Multiple Choice

If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6,then real GDP would have been approximately

• A)$9,795 billion.
• B)$10,305 billion.
• C)$10,485 billion.
• D)$9,750 billion.

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Definitions:

Accrued Fees

Fees that have been incurred but not yet paid, recognized in the financial statements according to the accrual basis of accounting.

Dividends Paid

The portion of a company's earnings distributed to its shareholders as a return on their investment.

Consolidation Adjustments

Journal entries made to eliminate the effects of intercompany transactions when preparing consolidated financial statements.

Temporary Differences

These are differences between the book value of assets and liabilities and their tax values that will result in taxable or deductible amounts in the future.