If Real GDP Rises and the GDP Price Index Has

question 30

Multiple Choice

If real GDP rises and the GDP price index has increased,

• A) the percentage increase in nominal GDP must have been less than the percentage increase in the price level.
• B) nominal GDP may have either increased or decreased.
• C) nominal GDP must have increased.
• D) nominal GDP must have fallen.

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Definitions:

Financial Reporting Practices

The methods, standards, and principles businesses use to prepare, present, and report their financial performance and position to stakeholders.

IASC

The International Accounting Standards Committee, responsible for developing global accounting standards.

Investing Activity

Refers to the purchase and sale of long-term assets and other business investments, typically not related to the entity's ordinary line of business.

Obtaining Funds

The act of securing financial resources for personal or business needs through various means such as loans, investments, or grants.