Adjusting Nominal GDP for Price Changes from a Base Year

question 67

Multiple Choice

Adjusting nominal GDP for price changes from a base year yields

• A)current GDP.
• B)real GDP.
• C)constant disposable income.
• D)GDP net of relative price changes.

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Definitions:

Stock Dividend

A distribution of additional shares of a company to its shareholders, instead of cash, usually based on a fixed ratio to the existing shares held.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds.

Total Assets Ratio

Total assets ratio refers to financial metrics that measure the efficiency and profitability of a company relative to its total assets.

Financing

The process of providing or obtaining the funds necessary for business activities, purchases, or investments.