If GDP Rises

question 84

Multiple Choice

If GDP rises,

• A)real GDP may either rise or fall or stay the same.
• B)we can be certain that the price level has risen.
• C)real GDP must fall.
• D)real GDP must also rise.

---

Definitions:

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases or services received.

Inventory

The raw materials, work-in-process products, and finished goods considered part of a business's assets that are ready or will be ready for sale.

Cash Coverage Ratio

The Cash Coverage Ratio measures a company's ability to cover its debt obligations with its operating cash flow, thus indicating its financial health and liquidity.

Depreciation Expense

The allocated amount of an asset's cost expensed over its useful life to represent wear and tear, obsolescence, or age.