The Economic Growth Rate Between 2012 and 2013 Is Calculated

question 118

Multiple Choice

The economic growth rate between 2012 and 2013 is calculated by

• A) the change in real GDP between the two years divided by real GDP in 2012, multiplied by 100.
• B) real GDP in 2013 minus real GDP in 2012, multiplied by 100.
• C) the change in real GDP between the two years divided by real GDP in 2013, multiplied by 100.
• D) real GDP in 2013 plus real GDP in 2012, divided by 2, and multiplied by 100.

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Definitions:

Net Income

The net income of a company once all costs and taxes are deducted from the overall revenue.

Fixed Assets

Long-term tangible assets used in operations, such as machinery, buildings, and equipment, which are not expected to be converted into cash in the short term.

Sales Capacity

The maximum level of sales that a company can achieve within a given period under normal operating conditions.

Projected Sales

An estimate of the amount of sales that a company expects to achieve in a future period.