Changes in Real GDP Reflect

question 42

Multiple Choice

Changes in real GDP reflect

• A)only changes in prices.
• B)only changes in the amounts being produced.
• C)both changes in prices and changes in the amounts being produced.
• D)neither changes in prices nor changes in the amounts being produced.

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Definitions:

Cost Flow Assumption

An accounting principle that determines how costs are allocated and reported, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and average cost methods.

Vendor Allowances

Vendor allowances are funds provided by suppliers to a retailer for various promotional activities aimed at increasing the sale of their products.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation, over a certain period of time.

Goods Sold

Refers to products that have been sold and transferred from the seller to the buyer.