If Real GDP Rose by 4 Percent Per Year and the GDP

question 295

Multiple Choice

If real GDP rose by 4 percent per year and the GDP deflator rose by 2.5 percent per year,the percentage change in GDP was

• A)1.5%.
• B)1.6%.
• C)6.5%.
• D)10%.

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Definitions:

Income Statement

A financial statement that shows a company’s revenues, expenses, and profits over a specific period, typically a quarter or year.

Credit Application

A form or request made by an individual to a financial institution for extending credit.

Capacity

The maximum amount that something can contain or produce.

Conditions

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