Suppose That GDP Increases in 2015,but Real GDP Decreases During

question 82

Multiple Choice

Suppose that GDP increases in 2015,but real GDP decreases during the year.It can be concluded that

• A)output declined or we had deflation in 2015.
• B)the price level fell in 2015.
• C)inflation was zero in 2015.
• D)output increased in 2015.

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Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities without relying on the sale of inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Gross Margin Percentage

A financial metric that represents the portion of sales revenue that exceeds the cost of goods sold, expressed as a percentage.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.