Table 5-4 the Table Below Reports Nominal and Real GDP for the for the U.S

question 123

Multiple Choice

Table 5-4
The table below reports nominal and real GDP for the U.S. from 1929 to 1932.

-Refer to Table 5-3. What was the growth rate of real GDP for 1930?

• A) -8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.
• B) -8.62%. Nominal GDP is a better gauge of economic well-being than real GDP.
• C) -9.43%. Real GDP is a better gauge of economic well-being than nominal GDP.
• D) -9.43%. Nominal GDP is a better gauge of economic well-being than real GDP.

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Definitions:

Price-Earnings Ratio

A valuation metric that measures a company's current share price relative to its per-share earnings, used to gauge if a stock is under or over-valued.

Common Stock

The stock outstanding when a corporation has issued only one class of stock.

Dividend Yield

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.

Par Value

A dollar amount assigned to each share of stock.