Nominal GDP Has Risen Faster Than Real GDP in the Last

question 61

Multiple Choice

Nominal GDP has risen faster than real GDP in the last decade because:

• A)​the price level has increased.
• B)​the price level has decreased.
• C)​the growth rate of productivity has accelerated.
• D)​the volume of foreign trade has expanded sharply.

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Merchandise Inventory

Goods that a retail or wholesale company intends to sell to customers. The inventory account is adjusted based on purchases and sales.

Purchases Returns

Goods returned to the supplier from the buyer due to defects, inaccuracies in orders, or other reasons.

Sales Returns

Transactions where customers return previously purchased merchandise to the seller, resulting in a deduction from gross sales to arrive at net sales.