If the Real Gross Domestic Product (GDP)for the Base Year

question 97

Multiple Choice

If the real gross domestic product (GDP) for the base year is $4 trillion,then the nominal gross domestic product (GDP) for that year is _____.

• A)−$.04 trillion
• B)$0.4 trillion
• C)$4 trillion
• D)$40 trillion
• E)$400 trillion

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Definitions:

Direct Materials

Raw materials used in the production of goods that are directly associated with the finished product.

Incremental Analysis

The process of identifying the financial data that changes under alternative courses of action.

Fixed Overhead

Regular, ongoing costs that are not affected by the level of production or sales, such as rent, salaries, and insurance.

Direct Materials

Raw materials directly used in the manufacturing of a product, which are easily traceable to the finished product.