If Real GDP Increases and the Price Index Also Increases

question 47

Multiple Choice

If real GDP increases and the price index also increases:

• A)​nominal GDP must also have risen.
• B)​nominal GDP must have fallen.
• C)​nominal GDP could have either risen or fallen.
• D)​the percentage increase in nominal GDP must have been greater than the percentage increase in the price level.

Recognize and account for the investment of a subsidiary in its parent company.

Determine consolidated net income including the impact of intra-entity transactions.

Understand mutual, direct, and indirect ownership structures within corporate groups.

Calculate income tax expense and the effect of tax allocation methods.

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Definitions:

Anaerobic Respiration

A process of energy production that occurs in the absence of oxygen, converting glucose to energy in cells.

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration in most living organisms and a component of the Earth's atmosphere.

Energy Expenditure

The amount of energy, measured in calories, that a person uses to breathe, circulate blood, digest food, and be physically active.

Toxic Compound

A chemical substance known to cause harm to organisms through its chemical action when ingested, inhaled, or comes into contact with skin.