Suppose Nominal GDP in 1996 Was $100 Billion and in 1998

question 24

Multiple Choice

Suppose nominal GDP in 1996 was $100 billion and in 1998 it was $260 billion.The general price index in 1996 was 100 and in 1998 it was 180.Between 1996 and 1998 the real GDP rose by:

• A) 160 percent.
• B) 44 percent.
• C) 37 percent.
• D) 12 percent.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period or activity.

Plane Operating Costs

The expenses associated with operating an aircraft, including fuel, maintenance, and crew salaries.

Spending Variance

The difference between the actual costs incurred and the budgeted or planned costs, often used in budget control and variance analysis.

Cost Formulas

Equations used to calculate the costs associated with the production of goods or services, often involving fixed and variable components.