If Real GDP Is $5 Trillion for a Particular Year

question 141

True/False

If real GDP is $5 trillion for a particular year and the GDP price index is 140,then nominal GDP is $7 trillion.

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Definitions:

Trading Security

A financial instrument held by a firm primarily for the purpose of selling it in the short term for profit.

Available-for-sale Security

Financial securities that are not classified as held-for-trading or held-to-maturity, and thus can be sold in the market.

Accounting

The systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business or individual.

Investment

The act of allocating resources, usually capital, with the expectation of generating an income or profit.