If Real GDP Doubles and the GDP Deflator Doubles, Then

question 216

Multiple Choice

If real GDP doubles and the GDP deflator doubles, then nominal GDP

• A)remains constant.
• B)doubles.
• C)triples.
• D)quadruples.

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Definitions:

Preferred Share Issue

The process of offering preferred shares to investors, which are stock shares that have priority over common shares in dividend payments and asset liquidation, but usually do not have voting rights.

Consolidated Balance Sheet

A financial statement that shows the aggregate financial position of a parent company and its subsidiaries as if they were a single entity.

Common Shares

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Consolidated Statement

Financial statements that aggregate the assets, liabilities, and operations of a parent company and its subsidiaries.